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(Querist)
10 November 2010 can some one tell me how future contract is used if i am a to received US dollar.
say i did future contract 10 in number and size is 472000.

rate as on future contract done is 47.21
rate as on 1st september is 46.88
while currency future rate is 46.86

i am to receive 100000 US $ as on 1st september.

please reply soon.
Thanks in advance
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Thrissurkkaran Ishtan

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Thrissurkkaran Ishtan (Expert)
28 December 2010 since you are receiving $, the next action you will do it to sell $ and get Rs.

So you have to enter into a "Sell $" future contract @ 46.86.

You will enter into a contract to sell $1,00,000 @ 46.86. Since actual rate on 1st Sept is better by 0.02, you have a loss (this is a loss that you did not know when you entered into the future contract)

Hope this is clear.
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