Euro / British Pounds Currency Futures

Category: Forex Futures / G10 Currency Futures

About Euro / British Pounds Currency Futures

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

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

One Euro / British Pounds Currency Futures contract covers 125,000 Euros with a minimum price increment (minimum price fluctuation) of 0.00005 per EUR. Thus, a Euro increment is equivalent to 6.25 in British Pound. For example, if a currency futures trader buys one EUR/GBP futures contract during the day at an exchange rate of 0.88882 British Pound per EUR and the exchange rate goes up to 0.89482 British Pound 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 British Pound. In the same example, 10 futures contracts would deliver 3,750 British Pound profit. However, if the EUR/GBP exchange rate dropped down by 60 units, the same futures buyer would suffer a 3,750 British Pound loss on 10 EUR/GBP futures contracts.

Euro / British Pounds Currency Futures are traded on the Chicago Merchandise Exchange (CME) under the RP symbol (ticker).