6.21.96 My First Trade: Before the Spot There Was Futures

Fx Futures

 

An exchange-traded contract to buy or sell a specified amount of a given currency at a predetermined price on a set date in the future.

 

Used by companies or sole proprietors to remove the exchange-rate risk inherent in cross-border transactions

 

to speculate and profit from currency exchange-rate fluctuations.

 

1 tick is 20-25 pips USD250.00

 

Paper Value 11Year Holding Period

 

Capital USD25,000.00

 

June 21, 1996 Open Sell 109.10 . 4 lots @250/lot

 

July 6, 2012 USDJPY 79.62 / 79.64

 

109.10 - 79.64 = 294 pips * 750 = USD 220,500 PHP9,481,500 Unrealized Profit

Done