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Currency Contract means any futures contract or option thereon providing for the delivery or receipt at a future date of a specified amount of a traded currency at a specified price and delivery point, or any other futures contract or option thereon approved for trading for U.S.

Forex trading may make you rich if you are a hedge fund with deep pockets or an unusually skilled currency trader. But for the average retail trader, rather than being an easy road to riches, forex trading can be a rocky highway to enormous losses and potential penury.

The Value Of The Forex Contract One standard contract (also known as one standard lot) in the Forex market is valued at $100,000 US dollars (USD). A mini Forex contract (also known as one mini lot) in the Forex market is 1/10 the value of a standard contract, and is valued at $10,000 US dollars (USD).

There are two types of currency options: calls and puts. Buying a call option gives the holder the right to buy a currency pair for the strike price on or before the expiry date, and buying a put option gives the holder the right to sell a currency pair for the strike price on or before the expiry date.

Currency futures are a exchange-traded futures contract that specify the price in one currency at which another currency can be bought or sold at a future date.Currency futures can be used to hedge other trades or currency risks, or to speculate on price movements in currencies.

Currency Options are contracts that grant the buyer of the option the right, but not the obligation, to buy or sell underlying currency at a specified exchange rate during a specified period of time. For this right, the buyer pays premium to the seller of the option.

Compulsory costs include spreads and commissions charged by the broker. optional costs include additional data feeds and news services. other costs involve overnight rollover fees, which is the difference in interest rates between the two countries of the currency pairs you are trading.