Euro / Norwegian Krone Currency Futures

Category: Forex Futures / G10 Currency Futures

About Euro / Norwegian Krone Currency Futures

Euro / Norwegian Krone Currency Futures contracts have been developed to track the exchange rate between the Euro and the Norwegian Krone. A Euro / Norwegian Krone Currency Futures contract gives the holder the right to exchange Euros for Norwegian Krone in the future at an exchange rate that was fixed on the date when the Euros were purchased.

Euro / Norwegian Krone Currency Futures belongs to the group of the "G10 Currency" from the "Forex" category.

One Euro / Norwegian Krone Currency Futures contract covers 125,000 Euros with a minimum price increment (minimum price fluctuation) of 0.0005 per EUR. Thus, a Euro increment is equivalent to 62.5 in Norwegian Krone. For example, if a currency futures trader buys one EUR/NOK futures contract during the day at an exchange rate of 8.0725 Norwegian Krone per EUR and the exchange rate goes up to 8.0785 Norwegian Krone 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 62.5 = 3750 Norwegian Krone. In the same example, 10 futures contracts would deliver 37,500 Norwegian Krone profit. However, if the EUR/NOK exchange rate dropped down by 60 units, the same futures buyer would suffer a 37,500 Norwegian Krone loss on 10 EUR/NOK futures contracts.

Euro / Norwegian Krone Currency Futures are traded on the Chicago Merchandise Exchange (CME) under the ENK symbol (ticker).