You might be familiar with the idea that the better the reward, the higher likelihood of risk. Nowhere is this more true than when you trade in forex futures of any kind. When you trade in futures for something, you are speculating on the price of that item at some point days, weeks, months or years ahead. The commodities market is a good example of this, in which someone can purchase a stake in meat or produce that has not yet come to the market. In this instance, the speculation is the price of that commodity when it does make it to the market. In the case of forex futures, the speculation is on the price of a specific currency at a fixed point in the future.
Thus, forex futures trading implies a contract to buy or sell a certain currency at a fixed date in the future. That fixed date is the termination date, on which the currency must be delivered unless there is a contract for another currency which offsets the price. In other words, a forex trader would buy or sell a future for a specific currency and receive that currency or the equal amount in a matching currency when the contract comes due.
Businesses often use forex futures to offset exchange rates when importing or exporting goods internationally, but forex futures trading is also useful for those who professionally trade in the forex market. Currency prices fluctuate all the time, and there is money to be made if you can pick the currencies that will increase in price. In this way, forex traders speculate on currencies in the same way that commodities traders speculate on the price of winter wheat or pork bellies.
Forex futures trading requires roughly the same tools as any other kind of forex trading activity. You should have a retail account and strong working knowledge of the market. It helps to have aids such as trading signals and automated software. If you are not already familiar with the market or appropriate strategies, forex futures trading is covered in most forex trading courses.
Your first step to get started depends on where you already are. If you are a beginner in the forex market, you might start with courses and a demo account. You can sign up for any number of courses through forex trading schools online. Most retail brokerages will offer free demo accounts. If you already know a lot about the forex futures market, you can start right away making trades with your current broker.