Nikkei 225 -- Yen vs Dollar

R

rajivvyas

What's the difference between the Dollar and Yen dominated futures? Is it as simple as the fact that the Yen dominated future contract is the difference between the the index value and the dollar denominated is the index value in dollar?

For instance, if you bought the Yen contract at 16,000 and the three months out the contract is 16,000 then you lose 1,000 points. The same example, if the value of the yen was 160 at the time of purchase and now it is 150, you are down zero.
 
Have you gone to the CME site and looked at the contract specs?

The contracts settle to the same index value, but the settlement is done in the appropriate ccy. So if you bot either of the contracts at 16000 and it settled at 15000, you would lose in both cases. If you bot the Yen contract, you lose ¥500,000. If you bot the Dollar contract, you lose $5,000.

If I am not mistaken, that's how it works. As a result, the Dollar Nikkei contract is one of 'em "quanto" futures.
 
Depending on the base currency of your account, currency conversion could/will be added to transaction charges. Check with your broker.
 
You must log in or register to reply here.
Back
Top