![]() By purchasing a currency futures contract now, in say September, he is able to lock in the current exchange rate of R7,2125. Overleaf are two simplified examples of how to use Currency Futures: 1Ĥ Example 1: Hedging transaction in a weakening rand scenario: John is travelling to the USA in December and wants to reduce his risk of a weakening in the US$/rand exchange rate when he buys his US$ travellers cheques (that is, his US$ will cost him more if this happens). Individuals, in other words, have no limit on the value that they may transact in the currency futures market. Currency Futures also allow individuals to trade outside their R2 million foreign investment allowance stipulated by the South African Reserve Bank. ![]() Long or short trades, that is, buying or selling a currency can be executed with ease. Currency Futures offer gearing on exchange rates in a cost effective way. They provide a way to hedge the risk to which a currency exposes the investor or to speculate when the belief is that the exchange rates will change. If you do not maintain your margin balance your position may be closed out at a loss and you will be liable for any resulting deficit.ģ pic Currency Futures Introduction Currency futures contracts can be hard-working additions to any investor s or trader s portfolio. You may be required to deposit a substantial additional sum, at short notice, to maintain your margin balance. You may, in a relatively short time, sustain more than the total loss of the funds placed by way of initial margin. This way, the drawings will update to the new symbol with the rollover.2 Wealth warning: Trading Currency Futures can offer significant returns BUT also subject you to significant losses if the market moves against your position. In the end, if the first option above doesn't do what you need, then the best thing is to not rollover through the Quote Board, but rather by selecting Chart > Perform Futures Symbol Rollover and then select the option Also Rollover Chart Drawing Symbols. Refer to the following documentation:Ĭhart Drawing Tools: Manage Chart Drawings To do this, go to Tools > Manage Chart Drawings and select a drawing and select Edit Symbol and enter the new symbol for the drawing. If you rollover the chart through the Quote Board, then it is not updating the symbol for the drawing (as you are already aware), therefore you would need to change the symbol for the drawing to the new contract. Refer to the following documentation:Ĭhart Settings: Show Chart Drawings For Different Symbols (Chart > Chart Settings > Chart Drawings menu)īut, if you just want the drawings to be associated with the particular instrument and not show if you change the underlying instrument (for instance, you only want to see CL drawings with CL charts and ES drawings with ES charts), then you would need to change the symbol for the drawings. This way, the chart will show the drawings regardless of the symbol for that chart. The easiest thing to do is to enable the option Chart > Chart Settings > Advanced Settings 3 > Show Chart Drawings from Different Symbols.
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