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 characteristics of currency futures 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 very 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 non-profitable 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 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.