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Industry

Is a margin foreign exchange contract considered a foreign exchange contract under Australian law?

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Is a margin foreign exchange contract considered a foreign exchange contract under Australian law?

A foreign exchange contract is defined in section 761A of the Corporations Act as a contract to:

  1. Buy or sell currency (whether Australian or not); or
  2. To exchange one currency (whether Australian or not) for another (whether Australian or not).

A foreign exchange contract can be entered into using margin trading and falls under this definition.