The forex futures market is a derivative of the world’s largest financial market, the forex market. Although this forex derivative makes up only one one-hundredth of the total forex market daily trading volume of US$1 trillion, it is considered one of the best forex trading methods amongst traders. Like traditional futures contracts, forex futures contracts are simply the buying or selling of a specific currency at a set price, time, contract size and location. These publically traded contracts are traded on a number of futures exchanges around the world, the most popular being the Chicago Mercantile Exchange.
Forex futures exchanges standardize each contract, allowing them to have their own unique characteristics. For example, CAD/USD futures have a contract size of CAD $100,000, while the CHF/USD contract size 125,000 Swiss francs.
Compared to spot contracts, forex futures spreads are significantly lower. This allows traders with limited funds to more conveniently invest in forex futures
The forex futures transaction cost is basically the fee charged by exchanges for buying/selling a contract. Forex futures transaction costs is also considerably lower, allowing for a more lucrative trading experience.
The relatively high forex futures leverage will give a potential significant boost to the trader’s return on investment.
The Renminbi is the official currency by Communist’s People’s Repiblic of China at the time of its foundation. The Chinese “Yuan” is the name used to refer to a unit of the Renminbi currency.
How to trade forex futures successfully is largely dependent on the trader’s awareness of updated economic news effecting the forex market, as well a through understanding of fundamental and technical analysis. PCM International is honored to hold the title of “the best future and forex broker” by many of its customers. This title has been earned because PCM International provides traders with all the resources needed to trade forex and futures contracts. How to trade forex futures successfully is largely dependent on the trader’s awareness of updated economic news effecting the forex market, as well a through understanding of fundamental and technical analysis. One of the resources mentioned above, by PCM International, is the “Economic News” page that provides traders with news that may affect their current/future trades.
Visit our “Economic News” section at: http://fxpcm.com/en/forex/economic-news
|Underlying||Offshore Chinese Yuan/US Dollar|
|Contract Size||USD 50,000|
|Trading Currency||Chinese Yuan (CNH)|
|Settlement Currency||US Dollars (USD)|
|Price Quote||CNH for 1 USD (e.g. CNH 6.3680 / 6.3682 Per 1 USD)|
|Minimum Tick Size||0.0002 CNH|
|Tick Value||CNH 10|
|Trading Days||Monday to Friday.|
|Trading Hours||07:00 - 23:30 Hours UAE time (GMT+4).|
|Trading Months||First 12 consecutive serial months|
|Last Trading Day||Second last business day of the contract month.|
|New Contract Listing||Business day immediately following the last day of trading.|
|Daily Variation Margin (VM) payment||Based on Spot Prices available for USD-CNH at the end of DGCX Trading Hours.|
|Final Cash Settlement Price Basis||Open Positions at expiry of contract shall be settled in US Dollars as per the Final Cash Settlement Price (FCSP) declared by the Exchange. The Final Cash Settlement Price shall be the Spot USD/CNY (HK) Fixing published by the Treasury Markets Association of Hong Kong at approximately 11.15 Hour Hong Kong time on the Last Trading Day, rounded to the nearest tick size.|
|Settlement basis||Cash Settled.|
|Daily Price Movement Limit||No price limit.|
|Maximum Order Size||500 contracts for Banks and Institutions promoted by Banks.All other entities 200 contracts.|
|Initial Margin based on SPAN||
"The Initial Margin will be denominated in CNH and the same shall be converted into equivalent USD at the prevalent Spot market rate of USD/CNH to display Initial Margin Utilization in USD terms.
At the outset, Initial Margin shall be CNH 6,500 per contract subject to change from time to time."
|Indicative VM||Indicative VM on EOS-Clear will be displayed in USD as per the prevalent spot market rate for USD/CNH.DCCC shall update the spot rates for USD/CNH intraday for at least 3 times at 06:00 hrs, 15:00 hrs and end of DGCX Trading Hours.|
|Calendar Spread Benefit||100% Calendar Spread benefit|
|Delivery Period Margin||Not applicable|
|Spot rate||Shall be taken from available market data sources like Bloomberg and Reuters.|