USD/KRW Futures Margin & Contract Specifications

What Are USD/KRW Futures?

USD/KRW futures are currency futures contracts based on the U.S. dollar–South Korean won (USD/KRW) exchange rate. The Korea Exchange (KRX) is the world’s most active marketplace for trading USD/KRW futures.

Factors Affecting the Price of USD/KRW Futures

1. Monetary Policies of the U.S. and South Korean Central Banks

• U.S. Federal Reserve (Fed) Policy: When the Fed raises interest rates or adopts a hawkish stance, the U.S. dollar typically strengthens while the Korean won weakens, pushing USD/KRW futures prices higher.
• Bank of Korea (BoK) Policy: If Korea raises rates to curb inflation, the won becomes more attractive, potentially driving USD/KRW futures prices lower.
• Interest Rate Differential: Investors tend to move capital toward higher-yielding markets. If U.S. interest rates are significantly higher than those in Korea, capital outflows from Korea can lift the USD/KRW exchange rate and futures prices.

2. South Korea’s Economic Data

Stronger-than-expected economic growth in Korea generally supports the won and is negative for USD/KRW futures. Conversely, runaway inflation or weak growth undermines the won and tends to push USD/KRW futures higher.

3. Exports and the Technology Sector

Korea’s exports are heavily dependent on semiconductors, led by companies such as Samsung and SK Hynix. When global technology demand is strong, export revenues increase, the won strengthens, and USD/KRW futures prices tend to fall.

4. Global Risk Appetite

Equities and currencies often move together. When stock markets fall, the won tends to weaken—especially given the high level of foreign participation in Korean equities. During periods of rising global risk aversion, foreign investors sell Korean stocks and repatriate capital, buying U.S. dollars and selling won. This can cause sharp spikes in the USD/KRW exchange rate and drive USD/KRW futures prices higher.

5. Geopolitical Risks

For Korea, any news of rising tensions between North and South Korea can quickly trigger panic selling of the won, pushing USD/KRW futures prices higher.
In addition, Korea is highly dependent on China for trade and on the United States for security. Deteriorating U.S.–China relations or a slowdown in China’s economy often weigh on the won, further supporting USD/KRW futures.

6. Political Instability

Political disruptions in Korea—such as emergency rule controversies or impeachment rumors—can raise concerns about policy continuity, prompt capital outflows, and drive USD/KRW futures prices higher.

7. Global Energy Prices

Korea is a major energy importer. A surge in international oil prices can widen the trade deficit and put depreciation pressure on the won, thereby lifting USD/KRW futures prices.

US Dollar Futures Margin

How much money is needed to trade futures? At the beginning, the required margin is the initial margin. While holding a position, the margin after deducting floating profits and losses must remain above the maintenance margin; otherwise, a margin call will be issued. For day-trading margin, only half of the margin is required, provided the position is closed before the market closes.

Foreign Futures

US Dollar Futures Contract Specifications

Here is a summary for traders of the contract specifications, exchange, trading hours, minimum price fluctuation, and available trading months for US Dollar FuturesFutures.