Currency futures are the contracts for buying and selling an amount of currency within the indicated time in future. Two parts, a buyer and a seller, enter into a contract at the stock exchange. According to the document, a buyer is obliged to buy and a seller is obliged to sell currency at the exchange rate specified in the contract. A buyer can resell the future until the expiry of the document.
Investors can terminate their obligation, buying or selling the currency prior to the value date stated in the contract, as the currency futures are daily subject to market evaluation. In other words, they simply close their position. The cost of currency future carrying is set when signing a treaty as well as it goes at the Forex market.
The difference is that a currency pair is exchanged on the value date, which is usually some date in future. The vast majority of participants on the future markets are speculators, however, who usually close their positions before the settlement date. Therefore, the validity of most currency futures expires before the value date.