Looking at old CFA test from 2008 and got mad confused on currency futures from AM question 11.
Could someone explain the very basic mechanics of a currency future transaction? Ie let’s say you have a “dollar futures contract, size = 100,000 USD, JPY/USD”. What does long/short and buy/sell mean in terms of what exchanges hands at expiration to/from each side?
Sometimes the most basic things trip me up, and the book doesn’t spell out things like you’re a 5 yr old!