1. Avoiding exchange rate risk: Exchange rate futures can be used as a hedging tool to help enterprises and individuals avoid exchange rate risk. By purchasing exchange rate futures, you can hedge the risk of future exchange rate fluctuations, thus reducing the losses caused by exchange rate fluctuations.
2. Discover the market price: There are many participants in the exchange rate futures market, including banks, funds and individuals, which makes the price of exchange rate futures reflect the market's expectation of the future exchange rate trend. By observing the price of exchange rate futures, we can understand the market's views on the future exchange rate, thus guiding our investment decisions.
3/ Liquidity management: Exchange rate futures can help enterprises and individuals manage liquidity. By buying or selling exchange rate futures, you can lock in the future exchange rate, thus avoiding cash flow fluctuations caused by exchange rate fluctuations.