Currencies Market

Foreign Exchange Currency Futures

Developed in 1972 by Chicago Mercantile Exchange Chairman Leo Melamed, working in concert with the Nobel Prize winning economist Milton Friedman, the currency markets serve an unique function in the world economy and are used by both speculators and hedgers. Speculators monitor international economic activity to trade the markets, while hedgers use currency contracts to hedge their foreign exchange risk. These contracts provide an ideal tool to accept Foreign Exchange risk exposure or manage those risks in an uncertain world.

Highlighted Contracts

U.S. Dollar Index – Started in 1973, the USDX is an index (or measure) of the value of the U.S. dollar relative to a basket of foreign currencies. It is currently a weighted geometric mean of the dollar’s value compared with a basket of currencies comprised of the Euro, Japanese Yen, Canadian Dollar, British Pound, Swedish Krona and the Swiss Franc.

Euro – Initiated in 1999, the euro was relatively inactive and quiet for the first three years of its existence. It is now utilized by 18 out of the 28 Member States of the European Union. Considered to be a fast growing currency, it is one of the most traded currencies in the world.

Japanese Yen – Officially adopted as the official currency of Japan in May of 1871, the Japanese yen is a floating exchange rate, which values itself against the U.S. dollar. It is the third most traded currency in the foreign exchange market behind the U.S. Dollar and Euro.  It is also widely used as a reserve currency after the U.S. Dollar, Euro and Pound Sterling.