Category: Forex Futures / G10 Currency Futures
Canadian / US Dollar Currency Futures contracts have been
developed to track the exchange rate between the Canadian dollar
and the USD. A
Canadian / US Dollar Currency Futures contract gives the holder the right to exchange Canadian dollars for USD in the future at an exchange rate that was fixed on the date when the
Canadian dollars were purchased.
Canadian / US Dollar Currency Futures belongs to the group of the "G10 Currency" from the
"Forex" category.
One Canadian / US Dollar Currency Futures contract covers 100,000 Canadian dollars with a minimum price
increment (minimum price fluctuation) of 0.0001 per CAD. Thus, a Euro
increment is equivalent to 10 in USD. For example, if a currency
futures trader buys one CAD/USD futures contract during the day at an exchange
rate of 0.951 USD per CAD and the exchange rate goes up to 0.957 USD per CAD
(60 units up) by the end of the day, the profit from closing the position and
selling the previously bought future contract would be 60 x 10
= 600 USD. In the
same example, 10 futures contracts would deliver 6,000 USD profit. However, if the
CAD/USD exchange rate dropped down by 60 units, the same futures buyer would
suffer a 6,000 USD loss on 10 CAD/USD futures contracts.
Canadian / US Dollar Currency Futures are traded on the Chicago Merchandise Exchange (CME) under the 6C symbol (ticker).
| Ticker Symbol: | 6C |
| Commodity: | CAD/USD |
| Expiration Cycle: | Four times a year on the second trading day preceding the third Wednesday of expiration (contract) month (as a rule Monday). Next four expirations are 6C4Z - December 2024 6C5H - March 2025 6C5M - June 2025 6C5U - September 2025 |
| Contract Size: | $100,000 Canadian dollar |
| Minimum Tick Size: | 0.0001 = $10.00 |
| Traded on: | Chicago Merchandise Exchange (CME) |
Naked options trading is very risky - many people lose money trading them. It is recommended contacting your broker or investment professional to find out about trading risk and margin requirements before getting involved into trading uncovered options.