ABSTRACT
The crown jewels of futures contracts are the financial futures contracts which were introduced to the world in the late 1970s and early 1980s by the CME and the CBOT in Chicago. Futures Price Quotes The beauty of futures contracts is that futures price data is always readily available and easy to find, as long as there is volume in the futures contract under consideration. As the delivery month advances, trading volume tends to decline. The rolling hedge short strategy is to currently sell forward the nearby futures contract, offset it just prior to maturity, then roll it over into a short position in the next futures contract. Prior to expiration of that contract, offset that position, and roll over into the next futures contract. The definition of unallocated reserves is relevant here. Unallocated Reserves is the difference between the total foreign exchange reserves in the IFS and the total allocated reserves in Composition of Official Foreign Exchange Reserves.
