The Johannesburg Stock Exchange (JSE) introduced currency future contracts during 2007 to allow local traders the ability to gain exposure to foreign currency movements relative to the Rand without affecting their offshore allowance.
Essentially, currency future contracts allow traders to benefit from the movement in the currency futures rate between the Rand and several major international currencies. Currency traders can also buy and sell currency pairs in order to obtain "long" or "short" exposure - in other words make money while the currency exchange rates move up or down. This happens automatically when the investor decides to either
No comments:
Post a Comment