Australian Dollar / Japanese Yen Currency Futures

Category: Forex Futures / G10 Currency Futures

About Australian Dollar / Japanese Yen Currency Futures

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

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

One Australian Dollar / Japanese Yen Currency Futures contract covers 200,000 Australian dollars with a minimum price increment (minimum price fluctuation) of 0.01 per AUD. Thus, a Euro increment is equivalent to 2000 in Japanese Yen. For example, if a currency futures trader buys one AUD/JPY futures contract during the day at an exchange rate of 79.57 Japanese Yen per AUD and the exchange rate goes up to 79.576 Japanese Yen 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 2000 = 120000 Japanese Yen. In the same example, 10 futures contracts would deliver 1,200,000 Japanese Yen profit. However, if the AUD/JPY exchange rate dropped down by 60 units, the same futures buyer would suffer a 1,200,000 Japanese Yen loss on 10 AUD/JPY futures contracts.

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