Are contracts to exchange cash flows as of a specific date or a series of specific dates based on a notional amount and fixed or floating rates.

Contracts that are standardized in nature

Foreign currency is the quotation of two different currencies, with the value of one currency being quoted against the other.

Does not require a daily cash settlement for underlying contract price changes

Is considered the most liquid currency pair in the world.

Are currency futures contracts that indicate the cost of exchanging one currency for another at a future date

When the quote currency weakens it will cause a increase in the futures price

A financial instrument that does not require an initial net investment.

Hedgers are risk-averse while Speculators are risk lovers.

Are financial derivatives that provide buyers with the right, but not the obligation, to buy or sell an underlying asset at a predetermined price and date.

Entail the exchange of a fixed interest rate for a floating rate, or vice versa.

Over 80% of derivatives are Interest rate swaps.