Welcome to NexusFi: the best trading community on the planet, with over 200,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- discounts are available after registering.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Does anyone know why the 6E contract has 125,000 Euros, but the 6B has only 62,500 pounds and the Australian and Canadian dollars have 100,000 dollars in their contracts?
"A Jedi's strength flows from the force."
-Yoda
Can you help answer these questions from other members on NexusFi?
This shows that the 6E contract is oversized, if you compare them to the other contracts, which come all very close to a nominal value of 100,000 $.
As you may expect this has historical reasons. The Euro has gradually been gaining strength against the US dollar over the last decade, which has increased its value. The Aussie has gained even more, but probably the contract size to start with was smaller than today.
When these contracts are established, I suspect that they are based on what made sense at the time based on value, fluctuations, and socio/economics. Further, since these are deliverable contacts, they (exchange) had to accept what is a reasonable deliverable amount.
The notional value has been fluctuating on the currencies relative to the US has been fluctuating for a while but I dont think that after so many years there will be any change to the contract size.
The Swaps/Forwards contracts today is much bigger than the stand contacts because you can customer amounts and delivery so "standardization" is not always a solution to all.
As a side note: The first currency futures were established in NY. But, because of the fixed exchange at the time nothing really happened. When Brenton Woods was abolished (72?-I think) the currency futures took off.
Chicago again takes the cake LOL
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
