How can the fx futures market be used for price discovery

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Reference no: EM13919868

1. In order for a derivatives market to function, two types of economic agents are needed: hedgers and speculators. Explain.

2. Why are most futures positions closed out through a reversing trade rather than held to delivery?

3. How can the FX futures market be used for price discovery?

4. Explain the basic differences between the operation of a currency forward market and a futures market.

Reference no: EM13919868

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