This new financial product started trading this Monday. This product completes the Market’s current derivatives package and enables the trading of currencies without time limits, adding interest rates.
ROFEX launched onto the market its new financial product: the Rolling Forex. It is a currency contract similar to the current dollar future but without expiration. Its main objective is to replicate the financial effect of buying dollars in the spot market with the usual benefits of futures trades, that is, without making physical delivery of the currency and the possibility of taking a position with a guarantee deposit, which represents a fraction of the trade total value.
The Rolling Forex is a contract by means of which the difference between the dollar value and the value set at the time of the initial purchase/sale is paid or collected, along with the financial cost of keeping that position through time. The contract does not expire and it is offset by taking the opposite position in the market.
Its purpose is to cover against short-term exchange rate movements. That’s why its characteristics are similar to those of ROFEX dollar future, as it has the same underlying asset and trading unit: a lot of U$S 1,000. However, this contract does not expire, its positions are daily settled and each open contract is rolled automatically through a daily charge.
By launching the Rolling Forex, ROFEX seeks to expand the financial market through the trading of this new product, which will become an excellent tool for the local derivatives market.