Foreign exchange futures contract

A foreign exchange futures contract refers to a contract in which both parties buy and sell foreign exchange at a certain date in the future through open bidding in a commodity exchange and deliver a standard amount of foreign exchange at an agreed price. Its initiator is the international money market of Chicago Mercantile Exchange. Founded in May 1972, it trades eight foreign exchange futures contracts: British pound, Canadian dollar, Dutch guilder, German mark, Japanese yen, Mexican peso, Swiss franc and French franc. Its operation flow is the same as that of commodity futures trading. The main rules are as follows: ① The trading time and delivery of all currency contracts traded in the international money market are arranged by the exchange. (2) When a new law promulgated by any national or international legal person conflicts with the contract requirements, this new law will become the first priority and automatically become a part of the trading rules, and all listed contracts and new contractors will be bound by it. ③ The extended price limit is: when the futures contract of a certain currency closes with the normal price limit changing in the same direction for two consecutive days, the price limit on the third day is 150% of the normal price limit, and the price limit on the fourth day is 200%. There is no price limit on the fifth day, and the normal price limit will be restored on the sixth day. (4) All expenses incurred when the contract is due for delivery will be borne by the seller. If the paired party fails to deliver the goods, it shall ensure that the loss suffered by the other party does not exceed 10% of the contract value.