British Pounds / US Dollar Currency Futures

Category: Forex Futures / G10 Currency Futures

About British Pounds / US Dollar Currency Futures

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

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

One British Pounds / US Dollar Currency Futures contract covers 62,500 British poundss with a minimum price increment (minimum price fluctuation) of 0.0001 per GBP. Thus, a Euro increment is equivalent to 6.25 in US Dollar. For example, if a currency futures trader buys one GBP/USD futures contract during the day at an exchange rate of 1.5369 US Dollar per GBP and the exchange rate goes up to 1.5429 US Dollar per GBP (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 GBP/USD exchange rate dropped down by 60 units, the same futures buyer would suffer a 3,750 US Dollar loss on 10 GBP/USD futures contracts.

British Pounds / US Dollar Currency Futures are traded on the Chicago Merchandise Exchange (CME) under the 6B symbol (ticker).