Editing Currency future (section)

===Speculation===
Currency futures are used to speculate by attempting to profit from rising exchange rates, but with the risk of a loss.

For example, Peter buys 10 September CME Euro FX Futures for €1,250,000 (each contract worth €125,000), at {{val|p=$|1.2713|u=/€}}. Each change of {{val|p=$|0.0001|u=/€}} (the minimum [[commodity tick]] size), produces a profit of {{US$|12.50}} per contract if the rate increases. At the end of the day, the futures close at {{val|p=$|1.2784|u=/€}}. The change in price is {{val|p=$|0.0071|u=/€}}. As each contract is over €125,000, and he has 10 contracts, his profit is {{US$|8875}}, less the cost of the contract. As with any future, this is paid to him immediately. However, if the rate drops below {{val|p=$|1.2713|u=/€}} the futures contracts are worthless and their cost lost.