The very first financial futures contracts were based on foreign currencies. It should be noted that the spot ( or forward market) is much bigger than the futures. The forwared market , also know as the Interbank market, is dominated by currency dealers at major global banks. Traded electronically and by telephone, the spot market's volume towers over the listed Exchange volume. The average unit is $1 million, and although currencies also can be traded at retail FOREX-type outlets. CFD currency trading has now become very popular with retail customers and institions. Hedge Funds are are also using CFD to hedge positions against currency movements.

Currency Fundamentals
The price of a currency is determined in the same way as the price of any other commodity. Currency users have risks. If a currency depreciates in value and a manufacturer is to receive this currency in payment for a product that he will deliver six months hence , he loses money. If not hedged, his entire profit margin could be wiped out. If the people in the US demand more Japanese-made goods, the demand for the Yen goes up in relation to the dollar, and Americans will have to pay higher prices to encourage holders of Yen to sell. If interest rates go up in EuroZone in relation to the UK, the Euro will look relatively more attractive as an investment than the British Pound.

Front Arena

FRONT ARENA, used by Hedge Fund managers, is the only single solution platform that you can use for cash, derivatives and exchange trading in credit derivatives, interest rate products, capital markets and foreign exchange across multiple geographies. No other single solution vendor can make this claim. For you, this means access to all data in a single database and true STP. Real-time information from sales, trading and risk management keeps you on top of your exposure at all times.

See Cyprus Tax for information about tax laws in Cyprus.

Selected benefits:

Wide product coverage
Deep pre- and post trade functionality
Online trading and execution
Real-time position and risk management
Real-time rates management and skewing
Real-time work flow management

Contact me to discuss how we can help you trade currencies using the Front Arena platform.