British Pound (GBP) Trading Strategy – Backtest and Futures Trading Example

The British pound (GBP) is the oldest currency still in use in the world today. It was first issued as legal money in the year 760 AD. According to the CME Group, the British pound and US dollar are underwritten by more than $250Bn in trade annually, which makes it one of the most actively traded currencies in the world. But what is a British pound futures trading strategy?

The British pound futures strategy is a futures contract to receive or deliver the specified amount of GBP on a future date, at an already agreed exchange rate. Its pricing is based on the future exchange rate of the British pound to the US dollar, and it is settled by delivery of the underlying — the GBP. The methodologies and techniques for trading this futures contract are referred to as the British pound futures strategy.

In this post, we answer some questions about the British pound futures trading strategy. We also provide you with a backtest.