Canadian Dollar / Japanese Yen Currency Futures

Category: Forex Futures / G10 Currency Futures

About Canadian Dollar / Japanese Yen Currency Futures

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

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

One Canadian Dollar / Japanese Yen Currency Futures contract covers 200,000 Canadian dollars with a minimum price increment (minimum price fluctuation) of 0.01 per CAD. Thus, a Euro increment is equivalent to 2000 in Japanese Yen. For example, if a currency futures trader buys one CAD/JPY futures contract during the day at an exchange rate of 83.89 Japanese Yen per CAD and the exchange rate goes up to 83.896 Japanese Yen per CAD (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 CAD/JPY exchange rate dropped down by 60 units, the same futures buyer would suffer a 1,200,000 Japanese Yen loss on 10 CAD/JPY futures contracts.

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