Uncovered Options Trading System
Category: Forex Futures / G10 Currency Futures
Euro / US Dollar Currency Futures contracts have been
developed to track the exchange rate between the Euro
and the USD. A
Euro / US Dollar Currency Futures contract gives the holder the right to exchange Euros for USD in the future at an exchange rate that was fixed on the date when the
Euros were purchased.
Euro / US Dollar Currency Futures belongs to the group of the "G10 Currency" from the
"Forex" category.
One Euro / US Dollar Currency Futures contract covers 125,000 Euros with a minimum price
increment (minimum price fluctuation) of 0.0001 per EUR. Thus, a Euro
increment is equivalent to 12.5 in USD. For example, if a currency
futures trader buys one EUR/USD futures contract during the day at an exchange
rate of 1.3624 USD per EUR and the exchange rate goes up to 1.3684 USD 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 12.5
= 750 USD. In the
same example, 10 futures contracts would deliver 7,500 USD profit. However, if the
EUR/USD exchange rate dropped down by 60 units, the same futures buyer would
suffer a 7,500 USD loss on 10 EUR/USD futures contracts.
Euro / US Dollar Currency Futures are traded on the Chicago Merchandise Exchange (CME) under the 6E symbol (ticker).
| Ticker Symbol: | 6E |
| 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 6E4Z - December 2024 6E5H - March 2025 6E5M - June 2025 6E5U - September 2025 |
| Contract Size: | $125,000 Euro |
| Minimum Tick Size: | 0.0001 = $12.50 |
| 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.