E7 Euro/ US Dollar Currency Futures

Category: Forex Futures / G10 Currency Futures

About E7 Euro/ US Dollar Currency Futures

E7 Euro/ US Dollar Currency Futures contracts have been developed to track the exchange rate between the Euro and the US Dollar. A E7 Euro/ US Dollar Currency Futures contract gives the holder the right to exchange Euros for US Dollar in the future at an exchange rate that was fixed on the date when the Euros were purchased.

E7 Euro/ US Dollar Currency Futures belongs to the group of the "G10 Currency" from the "Forex" category.

One E7 Euro/ US Dollar Currency Futures contract covers 62,500 Euros with a minimum price increment (minimum price fluctuation) of 0.0001 per EUR. Thus, a Euro increment is equivalent to 6.25 in US Dollar. For example, if a currency futures trader buys one EUR/USD futures contract during the day at an exchange rate of 1.3626 US Dollar per EUR and the exchange rate goes up to 1.3686 US Dollar per EUR (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 6.25 = 375 US Dollar. In the same example, 10 futures contracts would deliver 3,750 US Dollar profit. However, if the EUR/USD exchange rate dropped down by 60 units, the same futures buyer would suffer a 3,750 US Dollar loss on 10 EUR/USD futures contracts.

E7 Euro/ US Dollar Currency Futures are traded on the Chicago Merchandise Exchange (CME) under the E7 symbol (ticker).