Euro / Canadian Dollar Currency Futures

Category: Forex Futures / G10 Currency Futures

About Euro / Canadian Dollar Currency Futures

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

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

One Euro / Canadian Dollar Currency Futures contract covers 125,000 Euros with a minimum price increment (minimum price fluctuation) of 0.0001 per EUR. Thus, a Euro increment is equivalent to 12.5 in Canadian Dollar. For example, if a currency futures trader buys one EUR/CAD futures contract during the day at an exchange rate of 1.369 Canadian Dollar per EUR and the exchange rate goes up to 1.375 Canadian 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 12.5 = 750 Canadian Dollar. In the same example, 10 futures contracts would deliver 7,500 Canadian Dollar profit. However, if the EUR/CAD exchange rate dropped down by 60 units, the same futures buyer would suffer a 7,500 Canadian Dollar loss on 10 EUR/CAD futures contracts.

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