Future and options are basically the same with the other using premium and w/o obligation.

When trading FX options, you set/buy a strike price. Hence an agreement/was made on a fixed price.

In the FX futures, you dont see or at least set the fixed future price. All you see are charts and prices just like when trading normally. How can you set an agreement with fx futures and set a fixed future price? Does brokers doenst really offer that?

Please someone shed some light


Futures are designed such that no money is exchanged when the contract originates, so the futures price is agreed upon by the market and is not negotiable.

In theory you could create a futures contract where you "set" your own forward price and pay the difference between that and the current "fair" futures price, but exchange-traded futures do not work that way. There would be no difference anyways - your gain or loss in the end would be the same, so there's no point is exchanging money up front.

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Futures and options are different in a lot of ways.

If you read the snippet from Investopedia about futures -

Assume two traders agree to $100 on an oil futures contract. The buyer agrees to buy oil at $100 at expiry, and the sellers agrees to sell oil at $100. If the price of oil moves up to $105, the buyer of the contract at $100 is making money because they have an agreement to buy at $100 even though oil is currently trading at $105. The seller on the other hand is losing, because they could be selling at $105, but instead they agreed to sell at $100.

Since the agreed price is 100$, that becomes the price where one person turns his contract to in-money and the other out-of-money. The date is fixed (which is expiry).

How can you set an agreement with fx futures and set a fixed future price?

To answer this question - the Futures agreement would happen on the 100$ amount.

Another price that is important is the underlying asset's (in the example above - oil) trading price when you buy the contract. Based on whether the contract is in money (if the underlying asset price is already above 100$ at the time if buying the future contract), or out of money, the price of the contract would vary in the market.

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