Quanto Futures and Options are cash settled Derivatives in which the underlying traded product is denominated in a foreign currency that is settled in another domestic currency at a fixed exchange rate. These products appeal to market participants seeking foreign commodity exposure without the corresponding risk of adverse exchange rate fluctuations. The JSE’s wide range of Quanto Futures and Options products reference energy products, metals and Soft Commodities.
Investors will typically use Quanto Futures and Options when they feel that the price of an asset will appreciate but that the currency in which the asset is denominated will depreciate relative to the investor’s domestic currency. Commodity investors and speculators hoping to make a profit on price movements in the Futures or Options Contract price based on the foreign referenced commodity would do well to consider this product.
To access this product, register as a client with an authorised JSE member firm, deposit the required initial margin and sell or buy according to your needs.
Grain Futures and Options
CBOT Soy complex Futures and Options
Chicago Soft Red Wheat Futures and Options
Kansas City Board of Trade Hard Red Winter Wheat
Chicago Corn Futures and Options
SAVI White Maize