Canadian / US Dollar Currency Futures

Category: Forex Futures / G10 Currency Futures

About Canadian / US Dollar 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).