What is the Japanese Yen?
The official currency of Japan, the Yen is the third most traded currency in the world.
Uses of the Japanese Yen
The Yen is the local currency of Japan used to buy and sell goods and services. This currency is also the fourth most popular currency used as a reserve currency.
Risks of the Japanese Yen
With any currency there is always the risk that the value will decrease against another currency from a different country. This can be due to lower export of local commodities, recession or global instability such as a world war.
All futures contracts will feature the same risk through the direction in which you anticipate the contract to rise or fall. If you anticipate a currency to decrease in value, and it ends up rising in value. The short position that you hold will fall in value.