E-Micro Forex Futures

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DEFINITION of 'E-Micro Forex Futures'

Currency futures contracts traded on CME Globex that are one-tenth the size of standard Forex futures. Currency futures are exchange-traded futures contracts that have currency exchange rates as the underlying commodity. There are standard and E-micro contracts to suit a variety of traders' needs, accounts and risk tolerances.

BREAKING DOWN 'E-Micro Forex Futures'

The E-micro Forex futures contracts are offered exclusively by the CME Group and traded on CME Globex, an electronic futures trading platform. Unlike Forex, the currency futures market is regulated as a futures market and therefore has centralized pricing and clearing. Available E-micro Forex futures contracts include:


·EUR/USD - euro/US dollar
·USD/JPY - US dollar/Japanese yen
·GBP/USD - British pound/US dollar
·USD/CAD - US dollar/Canadian dollar
·AUD/USD - Australian dollar/US dollar
·USD/CHF - US dollar/Swiss franc

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RELATED FAQS
  1. How do futures contracts roll over?

    Traders roll over futures contracts to switch from the front month contract that is close to expiration to another contract ... Read Full Answer >>
  2. How is the value of a pip determined?

    A pip in foreign exchange trading is a measure of a price movement in a currency pair. "Pip" is an acronym for price interest ... Read Full Answer >>
  3. How does a forward contract differ from a call option?

    Forward contracts and call options are different financial instruments that allow two parties to purchase or sell assets ... Read Full Answer >>
  4. Why do companies enter into futures contracts?

    Different types of companies may enter into futures contracts for different purposes. The most common reason is to hedge ... Read Full Answer >>
  5. What does a futures contract cost?

    The value of a futures contract is derived from the cash value of the underlying asset. While a futures contract may have ... Read Full Answer >>
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    The use of the Fibonacci retracement is subjective. There is no objective method to verify one application of the Fibonacci ... Read Full Answer >>

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