Category: Forex Futures / G10 Currency Futures
E7 Euro/ US Dollar Currency Futures contracts have been
developed to track the exchange rate between the Euro
and the US Dollar. A
E7 Euro/ US Dollar Currency Futures contract gives the holder the right to exchange Euros for US Dollar in the future at an exchange rate that was fixed on the date when the
Euros were purchased.
E7 Euro/ US Dollar Currency Futures belongs to the group of the "G10 Currency" from the
"Forex" category.
One E7 Euro/ US Dollar Currency Futures contract covers 62,500 Euros with a minimum price
increment (minimum price fluctuation) of 0.0001 per EUR. Thus, a Euro
increment is equivalent to 6.25 in US Dollar. For example, if a currency
futures trader buys one EUR/USD futures contract during the day at an exchange
rate of 1.3626 US Dollar per EUR and the exchange rate goes up to 1.3686 US Dollar per EUR
(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 6.25
= 375 US Dollar. In the
same example, 10 futures contracts would deliver 3,750 US Dollar profit. However, if the
EUR/USD exchange rate dropped down by 60 units, the same futures buyer would
suffer a 3,750 US Dollar loss on 10 EUR/USD futures contracts.
E7 Euro/ US Dollar Currency Futures are traded on the Chicago Merchandise Exchange (CME) under the E7 symbol (ticker).
| Ticker Symbol: | E7 |
| Commodity: | EUR/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 E74Z - December 2024 E75H - March 2025 E75M - June 2025 E75U - September 2025 |
| Contract Size: | $62,500 Euro |
| Minimum Tick Size: | 0.0001 = $6.25 |
| 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.