Talk:Currency future

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[edit] Interest Rates

These contracts don't pay interest rates but I heard they have a upward bias that is routhly the same as the interest rate paid on the currency. Maybe someone can clarify

Yes, please see Forward contract#Rational pricing for the complete explanation. Basically, you can neutralize (or hedge) a futures position by entering into a spot transaction today and putting the cash into an interest-bearing account. Because of that, these contracts will have a pricing relationship that have an embedded interest rate component. Finnancier (talk) 13:12, 15 December 2007 (UTC)

[edit] Currency futures and forwards

I realize that some of the information may not be accurate, or may only apply to forwards and not futures. Should we make a clearer distinction between the two? Finnancier (talk) 13:25, 16 December 2007 (UTC)