Australian / Canadian Dollar Currency Futures

Category: Forex Futures / G10 Currency Futures

About Australian / Canadian Dollar Currency Futures

Australian / Canadian Dollar Currency Futures contracts have been developed to track the exchange rate between the Australian dollar and the Canadian Dollar. A Australian / Canadian Dollar Currency Futures contract gives the holder the right to exchange Australian dollars for Canadian Dollar in the future at an exchange rate that was fixed on the date when the Australian dollars were purchased.

Australian / Canadian Dollar Currency Futures belongs to the group of the "G10 Currency" from the "Forex" category.

One Australian / Canadian Dollar Currency Futures contract covers 200,000 Australian dollars with a minimum price increment (minimum price fluctuation) of 0.0001 per AUD. Thus, a Euro increment is equivalent to 20 in Canadian Dollar. For example, if a currency futures trader buys one AUD/CAD futures contract during the day at an exchange rate of 0.9429 Canadian Dollar per AUD and the exchange rate goes up to 0.9489 Canadian Dollar per AUD (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 20 = 1200 Canadian Dollar. In the same example, 10 futures contracts would deliver 12,000 Canadian Dollar profit. However, if the AUD/CAD exchange rate dropped down by 60 units, the same futures buyer would suffer a 12,000 Canadian Dollar loss on 10 AUD/CAD futures contracts.

Australian / Canadian Dollar Currency Futures are traded on the Chicago Merchandise Exchange (CME) under the ACD symbol (ticker).