Euro / US Dollar Currency Futures

Category: Forex Futures / G10 Currency Futures

About Euro / US Dollar Currency Futures

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

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

One Euro / US 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 USD. For example, if a currency futures trader buys one EUR/USD futures contract during the day at an exchange rate of 1.3624 USD per EUR and the exchange rate goes up to 1.3684 USD 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 USD. In the same example, 10 futures contracts would deliver 7,500 USD profit. However, if the EUR/USD exchange rate dropped down by 60 units, the same futures buyer would suffer a 7,500 USD loss on 10 EUR/USD futures contracts.

Euro / US Dollar Currency Futures are traded on the Chicago Merchandise Exchange (CME) under the 6E symbol (ticker).