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A question about foreign exchange futures ~

2024-09-22 18:12
An investor in the United States expected the appreciation of the Euros and sold 10 Euros futures contracts for June delivery at the price of 1,1825 USD/USD on the MME. After that, he bought and closed the position at the exchange rate of 1.2430. How much did the investor make or lose? (Excluding transaction fees and other fees) The correct answer was a loss of $75,625. How did you calculate it?
2024-09-22 20:30

Foreign exchange futures were a type of financial derivative that allowed investors to obtain a certain amount of foreign exchange income at a certain point in the future by constructing a contract on the foreign exchange price. Below was the answer to this question: If a person bought 10,000 USD/Jpy foreign exchange futures on January 1st, 2023, he could sell these foreign exchange futures at the same price on March 1st, 2023 and earn a certain profit. This profit could come from changes in foreign exchange rates or from the investor's trading skills and risk management ability.

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