What are Forex futures?

Forex futures are exchange-traded currency derivative contracts obligating the buyer and seller to transact at a set price and predetermined time. Hedging, to reduce exposure to the risk created by currency fluctuations, and speculation, to potentially generate profits, are the two main uses for forex futures.

Is forex more regulated than futures?

Forex is decentralized and less regulated than futures. The level of regulation varies by country, which can affect transparency and trader protection. Futures is highly regulated with standardized contracts and centralized exchanges. This regulation provides a high level of transparency and security for traders.

Where are Forex futures traded?

Forex futures are traded at exchanges around the world. One of the most popular exchanges is the Chicago Mercantile Exchange (CME) Group. Forex, much like most futures contracts, can be traded in an open out-cry system via live traders on a pit floor or entirely through electronic means with a computer and access to the Internet.