If you import or export, or when your travel abroad, you are at
the mercy of fluctuating exchange rates. You can get protection
against currency movements with currency futures and options
from the JSE. By purchasing currency futures and options at the
current Rand value, you can protect yourself against future Rand
movements. It’s quick, easy and cost effective.
One of the largest traders of agricultural commodities on SAFEX
A currency futures contract is a contract that allows market participants to trade the underlying exchange rate for a
period of time in the future. Currency futures are agreements between two counterparties where one counterparty buys
(longs) the underlying exchange rate and the other sells (shorts) the underlying exchange rate on a specified future date.
The underlying instrument of a currency future contract is the rate of exchange between one unit of foreign currency
and the South African Rand.
Currency futures are contracts that allow participants to take a view on the movement of the exchange rate as well as
hedge against currency risk. Currency futures will be used as a trading, speculating and hedging tool by all interested
participants.This market is easily accessible due to low costs and small contract sizes.
The following currencies
are available to trade:
Dollar / Rand
Euro / Rand
Sterling / Rand
Australian Dollar / Rand
Japanese Yen / Rand
Canadian Dollar / Rand
Swiss Franc / Rand
The following categories of clients are
permitted to trade and hold positions
in currency futures and are referred
to as “qualifying clients,” namely a
South African individual or a South
African corporate entity with no limits
applicable; a non-resident individual
or corporate entity with no limits
applicable; a resident financial service
provider and collective investment
scheme or pension fund organisation
subject to their foreign portfolio
allowance and a resident long-term
or short-term insurer subject to their
foreign portfolio allowance.
Currency futures have a minimum
contract size of 1,000 foreign underlying
currency. Contract sizes are thus
relatively small and readily available.
