Forex futures

crgarcia · Mar 10, 2008

The CME Euro FX controls 125,000 Euros and the E-Mini Euro FX controls 62,500 Euros

Tick size (minimum fluctuation) is $12.50 for the Euro FX:
http://www.cme.com/clearing/clr/spec/contract_specifications_cl.html?product=EC
and $6.25 for the E-Mini euro FX:
http://www.cme.com/clearing/clr/spec/contract_specifications_cl.html?product=E7

Is it 12.50 and 6.25 US Dollars or Euros?

0.0001 of 125,000/62,500 Euros would be 12.50 and 6.25 Euros, why the CME uses the $ symbol?

forex-forex · Mar 10, 2008

Quote from crgarcia:

Why the CME uses the $ symbol?

Must be a mistake, because each tick would be 12.50 Euro's.

crgarcia · Mar 10, 2008

Quote from forex-forex:

Must be a mistake, because each tick would be 12.50 Euro's.

Logically, it could only be 12.50 Euros.

It's incredible the CME made such a big mistake on this basic info.

Businessman · Mar 10, 2008

When i trade 6E on Globex, the P/L is dollars and you make or lose 12.5 US dollars per tick.

forex-forex · Mar 10, 2008

Quote from Businessman:

When i trade 6E on Globex, the P/L is dollars and you make or lose 12.5 US dollars per tick.

Below would be 12.50 Euro's per tick.

"The CME Euro FX controls 125,000 Euros and the E-Mini Euro FX controls 62,500 Euros"

ssss · Mar 10, 2008

forex-forex

Must be a mistake, because each tick would be 12.50 Euro's.
##################

Take case euro/dollar =1:1

one lot is 125000 euro =125000$

one tick is 12.5 $

after that think some ... about base and quote currency

your respectfully

sim03 · Mar 10, 2008

Quote from crgarcia:

Logically, it could only be 12.50 Euros.

It's incredible the CME made such a big mistake on this basic info.

Quote from forex-forex:

Must be a mistake, because each tick would be 12.50 Euro's.

Yes, something here is incredible. Don't know what the poor Merc would do without sharp-eyed guys like you watching over them constantly.

sim03 · Mar 10, 2008

Try this trade, on paper and/or on a calculator:

buy to open 1 Euro FX @1.5340 (position value = 125,000 x 1.5340 = $191,875.00);
sell to close 1 Euro FX @1.5341 (position value = ... = $191,887.50).

What's the gross P/L, ignoring commissions?

And there's your futures tick value. Hope this helps.

To ensure that you've mastered the material, now repeat this simple exercise for the GBP/JPY future (1 contract = Â£125,000).

forex-forex · Mar 10, 2008

Quote from sim03:

Yes, something here is incredible. Don't know what the poor Merc would do without sharp-eyed guys like you watching over them constantly.

I figure it's a simple typo that got by the proofreader and the $ will be changed to € once they pick up the mistake.

crgarcia · Mar 10, 2008

Quote from sim03:

Try this trade, on paper and/or on a calculator:

buy to open 1 Euro FX @1.5340 (position value = 125,000 x 1.5340 = $191,875.00);
sell to close 1 Euro FX @1.5341 (position value = ... = $191,887.50).

What's the gross P/L, ignoring commissions?

And there's your futures tick value. Hope this helps.

To ensure that you've mastered the material, now repeat this simple exercise for the GBP/JPY future (1 contract = Â£125,000).

Your calculations are completely wrong, but the concept is right:

125,000 Euros x 1.5340 $/Euro equals $191,750
125,000 Euros x 1.5341 $/Euro equals $191,762.50

So, yes, 1 pip in a 125,000 Euros contract equals USD $12.50