Japanese Yen / US Dollar Currency Futures

Category: Forex Futures / G10 Currency Futures

About Japanese Yen / US Dollar Currency Futures

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

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

One Japanese Yen / US Dollar Currency Futures contract covers 12,500,000 Japanese Yens with a minimum price increment (minimum price fluctuation) of 0.000001 per JPY. Thus, a Euro increment is equivalent to 12.5 in USD. For example, if a currency futures trader buys one JPY/USD futures contract during the day at an exchange rate of 0.010639 USD per JPY and the exchange rate goes up to 0.016639 USD per JPY (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 JPY/USD exchange rate dropped down by 60 units, the same futures buyer would suffer a 7,500 USD loss on 10 JPY/USD futures contracts.

Japanese Yen / US Dollar Currency Futures are traded on the Chicago Merchandise Exchange (CME) under the 6J symbol (ticker).