Listen to a Business English Dialogue About Currency futures
Sarah: Hi Jason, have you heard about currency futures in finance?
Jason: Hello Sarah, yes, currency futures are contracts that allow investors to buy or sell a specified amount of currency at a predetermined price on a future date.
Sarah: That sounds interesting. How are currency futures different from spot transactions?
Jason: Well, Sarah, in spot transactions, currencies are bought and sold immediately at the current market price, while currency futures involve buying or selling currencies at a predetermined price on a future date.
Sarah: I see. So, are currency futures commonly used by businesses or investors?
Jason: Absolutely, Sarah. Currency futures are widely used by businesses and investors to hedge against fluctuations in currency exchange rates and to speculate on future currency movements.
Sarah: That makes sense. It seems like currency futures provide a way to manage currency-related risks effectively.
Jason: Exactly, Sarah. Currency futures offer a valuable tool for managing currency risk exposure and optimizing financial strategies in an ever-changing global market.