British Pounds / Japanese Yen Currency Futures

Category: Forex Futures / G10 Currency Futures

About British Pounds / Japanese Yen Currency Futures

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

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

One British Pounds / Japanese Yen Currency Futures contract covers 125,000 British poundss with a minimum price increment (minimum price fluctuation) of 0.01 per GBP. Thus, a Euro increment is equivalent to 1250 in Japanese Yen. For example, if a currency futures trader buys one GBP/JPY futures contract during the day at an exchange rate of 144.46 Japanese Yen per GBP and the exchange rate goes up to 144.466 Japanese Yen per GBP (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 1250 = 75000 Japanese Yen. In the same example, 10 futures contracts would deliver 750,000 Japanese Yen profit. However, if the GBP/JPY exchange rate dropped down by 60 units, the same futures buyer would suffer a 750,000 Japanese Yen loss on 10 GBP/JPY futures contracts.

British Pounds / Japanese Yen Currency Futures are traded on the Chicago Merchandise Exchange (CME) under the PJY symbol (ticker).