The forex futures market is a derivative of the world’s largest financial market, the forex market. Although this forex derivative makes up only one one-hundredth of the total forex market daily trading volume of US$1 trillion, it is considered one of the best forex trading methods amongst traders. Like traditional futures contracts, forex futures contracts are simply the buying or selling of a specific currency at a set price, time, contract size and location. These publically traded contracts are traded on a number of futures exchanges around the world, the most popular being the Chicago Mercantile Exchange. 

Forex Futures Contracts

Forex futures exchanges standardize each contract, allowing them to have their own unique characteristics. For example, CAD/USD futures have a contract size of CAD $100,000, while the CHF/USD contract size 125,000 Swiss francs.

Advantages of trading Forex Futures

Low Spreads

Compared to spot contracts, forex futures spreads are significantly lower. This allows traders with limited funds to more conveniently invest in forex futures

Transaction Cost

The forex futures transaction cost is basically the fee charged by exchanges for buying/selling a contract. Forex futures transaction costs is also considerably lower, allowing for a more lucrative trading experience.

Higher Leverage

The relatively high forex futures leverage will give a potential significant boost to the trader’s return on investment.

The Swiss Franc- US Dollar Pair

The Swiss-Franc vs. US Dollar currency pair is considered one of the most popular currency pairs to trade in the futures market. The Swiss vs. US Dollar currency rate fluctuations are highly dependent on the economy of the US, Switzerland and the interest rate differential between the Federal Reserve and the Swiss National Bank. The Swiss Franc’s is a highly stable currency mainly due to Switzerland’s political stability. The currency has been experiencing an increasing demand as a safe haven investment, especially in the 2008 financial crisis. Investors are often drawn to the Swiss Franc during unstable political and economical times. This is due to the fact that safe haven investments are considered to appreciate during such times.

How to trade forex futures successfully is largely dependent on the trader’s awareness of updated economic news effecting the forex market, as well a through understanding of fundamental and technical analysis. PCM International is honored to hold the title of “the best future and forex broker” by many of its customers. This title has been earned because PCM International provides traders with all the resources needed to trade forex and futures contracts. How to trade forex futures successfully is largely dependent on the trader’s awareness of updated economic news effecting the forex market, as well a through understanding of fundamental and technical analysis. One of the resources mentioned above, by PCM International, is the “Economic News” page that provides traders with news that may affect their current/future trades.

Visit our “Economic News” section at: http://fxpcm.com/en/forex/economic-news

Swiss Franc -US Dollar FX Futures

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