Trading Strategies

Currency swap exchanges both principal and coupons

How spot differs from futures and forwards

Strike price determined at contract start

Swap points adjust for interest rate difference

Algorithmic for systematic trading approach

Speculators aim for short-term profit

High-frequency trading in milliseconds

Margin requirements set by exchange

Settlement occurs at contract expiry

How to manage speculation responsibly

Expiration date limits the option life

Rolling spot positions overnight with swaps

Daily mark-to-market settlement process

Used by corporations to hedge risk

Psychological challenges of pure speculation

Currency Quotes