Norwegian Kroner / US Dollar Currency Futures

Category: Forex Futures / G10 Currency Futures

About Norwegian Kroner / US Dollar Currency Futures

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

Norwegian Kroner / US Dollar Currency Futures belongs to the group of the "G10 Currency" from the "Forex" category.

One Norwegian Kroner / US Dollar Currency Futures contract covers 2,000,000 Norwegian Kroners with a minimum price increment (minimum price fluctuation) of 0.00001 per NOK. Thus, a Euro increment is equivalent to 20 in USD. For example, if a currency futures trader buys one NOK/USD futures contract during the day at an exchange rate of 0.16934 USD per NOK and the exchange rate goes up to 0.17534 USD per NOK (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 20 = 1200 USD. In the same example, 10 futures contracts would deliver 12,000 USD profit. However, if the NOK/USD exchange rate dropped down by 60 units, the same futures buyer would suffer a 12,000 USD loss on 10 NOK/USD futures contracts.

Norwegian Kroner / US Dollar Currency Futures are traded on the Chicago Merchandise Exchange (CME) under the NOK symbol (ticker).