Maxi Currency Futures Contract

The Dollar/Rand Maxi Currency Futures contract is a currency future with a larger nominal size of $100,000 per contract instead of the normal size of $1,000 per contract.

Benefits

• The larger contract has been introduced due to market demand and to entice larger contracts to be traded on JSE.
• This will further encourage off-share market participants to trade on the JSE as opposed to trading on foreign platforms.

Who should use this product?

• Hedgers seeking to reduce risk by protecting an existing portfolio against adverse currency movements.
• Speculators hoping to make a profit on short-term movements in prices.
• Investors looking to enhance the long-term performance of a portfolio of assets.
• Arbitrageurs looking to profit from price differentials of similar products in different markets.

How to use this product?

• Buy a Currency Future (long) when you expect the Rand to depreciate.
• Sell a Currency Future (short) when you expect the Rand to appreciate.