How Currency Futures Work?

Standardized contracts that trade on centralized markets are currency futures. Futures might be settled in cash or physically delivered. Futures that are cash-settled are settled daily on a mark-to-market basis. The differences are settled in cash till the expiration date as the daily price changes. At the expiration date for futures settled by physical delivery, […]

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What Does Inflation Mean For Mortgage Rates?

Inflation is a self-fulfilling prophecy. The longer it lasts, the more insidious its consequences become, with increased mortgage rates as an unwelcome side effect. Inflation devalues everything denominated in US dollars because it devalues the US dollar. Of course, this includes mortgage-backed securities, so when inflation is prevalent, MBS demand begins to decline. After all, […]

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