Uncovered Options Trading System
Category: Forex Futures / G10 Currency Futures
Swedish Kronor / US Dollar Currency Futures contracts have been
developed to track the exchange rate between the Swedish Kronor
and the USD. A
Swedish Kronor / US Dollar Currency Futures contract gives the holder the right to exchange Swedish Kronors for USD in the future at an exchange rate that was fixed on the date when the
Swedish Kronors were purchased.
Swedish Kronor / US Dollar Currency Futures belongs to the group of the "G10 Currency" from the
"Forex" category.
One Swedish Kronor / US Dollar Currency Futures contract covers 2,000,000 Swedish Kronors with a minimum price
increment (minimum price fluctuation) of 0.00001 per SEK. Thus, a Euro
increment is equivalent to 20 in USD. For example, if a currency
futures trader buys one SEK/USD futures contract during the day at an exchange
rate of 0.13959 USD per SEK and the exchange rate goes up to 0.14559 USD per SEK
(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 20
= 1200 USD. In the
same example, 10 futures contracts would deliver 12,000 USD profit. However, if the
SEK/USD exchange rate dropped down by 60 units, the same futures buyer would
suffer a 12,000 USD loss on 10 SEK/USD futures contracts.
Swedish Kronor / US Dollar Currency Futures are traded on the Chicago Merchandise Exchange (CME) under the SEK symbol (ticker).
| Ticker Symbol: | SEK |
| Commodity: | SEK/USD |
| Expiration Cycle: | Four times a year on the second trading day preceding the third Wednesday of expiration (contract) month (as a rule Monday). Next four expirations are SEK4Z - December 2024 SEK5H - March 2025 SEK5M - June 2025 SEK5U - September 2025 |
| Contract Size: | $2,000,000 Swedish Kronor |
| Minimum Tick Size: | 0.00001 = $20.00 |
| Traded on: | Chicago Merchandise Exchange (CME) |
Naked options trading is very risky - many people lose money trading them. It is recommended contacting your broker or investment professional to find out about trading risk and margin requirements before getting involved into trading uncovered options.