On a currency exchange platform, you can buy or sell currency
futures. If you are an importer, you can buy futures to "lock in" a price for
your purchase of actual foreign currency at a future 10 date. You thus avoid
exchange rate risk that you would otherwise have faced. On the other hand, if
you are an exporter, you sell currency futures on the exchange platform and
"lock in" a sale price at a future date. However, it may be noted that the
contract will be marked to market at the daily settlement price and profit or
loss will be paid / collected on a daily basis.
