foreign currency contract
Defined in 1 place of the United States Code.
The term “foreign currency contract” means a contract—
(i) which requires delivery of, or the settlement of which depends on the value of, a foreign currency which is a currency in which positions are also traded through regulated futures contracts,
(ii) which is traded in the interbank market, and
(iii) which is entered into at arm's length at a price determined by reference to the price in the interbank market.
Source
- 1994–present26 U.S.C. § 1256Internal Revenue Code · Section 1256 contracts marked to market · for purposes of this section