Currency futures are specific types of forward outright deals. Because they are
derived from the spot price, they are derivative  instruments.

 They are specific

with regard to the expiration date and the size of the trade amount. Whereas, generally, forward
outright deals—those that mature past the spot delivery date—will mature on any valid date in the
two countries whose  currencies  are being traded, standardized  amounts of foreign currency
futures mature only on the third Wednesday of March, June, September, and December.
 
The following are characteristics of currency futures that make them attractive. They are open to
all market participants, individuals included.

It is a  central market, just as efficient as the cash
market, and whereas the cash market is a much decentralized market, futures trading takes place
under one roof. It eliminates the credit risk because the  Chicago Mercantile Exchange
Clearinghouse acts  as the buyer for every seller, and vice versa.

 In turn, the Clearinghouse
minimizes its own exposure by requiring traders who maintain a nonprofitable position to post
margins equal in size to their losses. Although the futures and spot markets trade closely together,
certain divergences between the two occur, generating arbitraging opportunities. Gaps, volume,
and open interest are significant technical analysis tools (See Chapter 4) solely available in the
futures market. Because of these benefits, currency futures trading volume has steadily attracted a
large variety of players. Because futures are forward outright contracts and the forward prices are
generally slow movers, the elimination of the forward spreads will transform the futures contracts
into spot contracts. 
 
For traders outside the exchange, the prices  are available from on-line  monitors. The most
popular pages are found on  Bridge,  Telerate,  Reuters, and  Bloomberg.  Telerate presents the
currency futures on composite pages, while Reuters and Bloomberg display currency futures on
individual pages that show the convergence between the futures and spot prices.