Euro / Japanese Yen Currency Futures

Category: Forex Futures / G10 Currency Futures

About Euro / Japanese Yen Currency Futures

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

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

One Euro / Japanese Yen Currency Futures contract covers 125,000 Euros with a minimum price increment (minimum price fluctuation) of 0.01 per EUR. Thus, a Euro increment is equivalent to 1250 in Japanese Yen. For example, if a currency futures trader buys one EUR/JPY futures contract during the day at an exchange rate of 127.57 Japanese Yen per EUR and the exchange rate goes up to 127.576 Japanese Yen 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 1250 = 75000 Japanese Yen. In the same example, 10 futures contracts would deliver 750,000 Japanese Yen profit. However, if the EUR/JPY exchange rate dropped down by 60 units, the same futures buyer would suffer a 750,000 Japanese Yen loss on 10 EUR/JPY futures contracts.

Euro / Japanese Yen Currency Futures are traded on the Chicago Merchandise Exchange (CME) under the RY symbol (ticker).