Forex

Foreward Currency Contracts?

Does anyone have knowledge of FOREIGN CURRENCY CONTRACTS. Can these be bought WITHOUT a broker- instead buy through any foreign Bank. Not interested in FOREX brokers. How are they drawn up? Is margin required? Can it be done without margin? I'm looking at an exotic currency that is'nt traded in most places. Thank you.

If you want to trade currency futures you will need to go through a broker licensed to trade commodities. However, there nothing to stop you from creating a contract with another party to exchange a certain amount of currency on a certain date. Drawing up the contract and finding that other party might be more trouble than its worth depending on how much you are planning on investing. Another alternative would be to go to an exchange bank and exchange your money for this currency you want to invest in. If the currency appreciates you can exchange it back later at the higher rate. But you won't be earning any interest in the mean time. A final option is to invest in the government bonds of the country who's currency you want to purchase. With some countries you can purchase these directly through the countries treasury.