Uncovered Options Trading System
Category: Forex Futures / G10 Currency Futures
Swiss Franc / US Dollar Currency Futures contracts have been
developed to track the exchange rate between the Swiss Franc
and the USD. A
Swiss Franc / US Dollar Currency Futures contract gives the holder the right to exchange Swiss Francs for USD in the future at an exchange rate that was fixed on the date when the
Swiss Francs were purchased.
Swiss Franc / US Dollar Currency Futures belongs to the group of the "G10 Currency" from the
"Forex" category.
One Swiss Franc / US Dollar Currency Futures contract covers 125,000 Swiss Francs with a minimum price
increment (minimum price fluctuation) of 0.0001 per CHF. Thus, a Euro
increment is equivalent to 12.5 in USD. For example, if a currency
futures trader buys one CHF/USD futures contract during the day at an exchange
rate of 0.9309 USD per CHF and the exchange rate goes up to 0.9369 USD per CHF
(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
CHF/USD exchange rate dropped down by 60 units, the same futures buyer would
suffer a 7,500 USD loss on 10 CHF/USD futures contracts.
Swiss Franc / US Dollar Currency Futures are traded on the Chicago Merchandise Exchange (CME) under the 6S symbol (ticker).
| Ticker Symbol: | 6S |
| Commodity: | CHF/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 6S4Z - December 2024 6S5H - March 2025 6S5M - June 2025 6S5U - September 2025 |
| Contract Size: | $125,000 Swiss Franc |
| 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.