instance, EUR/USD terms are now 20 consecutive quarters (5 years) plus 3 serial contract months. Uses Hedging Investors use these futures contracts to hedge against foreign exchange risk. If an investor will receive a cashflow denominated in a foreign currency on some future date, that investor can lock in the current exchange rate by entering into an offsetting currency futures position that expires on the date of the cashflow. For example, Jane is a US-based investor who will receive €1,000,000 on December 1. The current exchange rate implied by the futures is . She can lock in this exchange rate by selling €1,000,000 worth of futures contracts expiring on December 1. That way, she is guaranteed an exchange rate of regardless of exchange rate fluctuations in the meantime. Speculation Currency futures can also be used to speculate and, by incurring a risk, attempt to profit from rising or falling exchange rates. For example, Peter buys 10 September CME Euro FX Futures for €1,250,000 (each contract worth €125,000), at . At the end of the day, the futures close at . The change in price is . As each contract is over €125,000, and he has 10 contracts, his profit is . As with any future, this is paid to him immediately. More generally, each change of (the minimum Commodity tick size), is a profit or loss of per contract. See also List of finance topics Forward contract Foreign exchange market Foreign exchange derivative Currency swap External links Quandl: Currencies Futures - free, historical data in CSV, Excel, JSON or XML Currency Futures Contract Specifications and Tick Values at ExcelTradingModels.com References Derivatives (finance) it:Future#Currency future