British Pound Trading

British Pound Trading Defined and Explained

British Pound futures traders can manage the risks associated with currency rate fluctuation and take advantage of profit opportunities stemming from changes in British Pound rates.

The British pound is the currency of the United Kingdom as well as a major currency traded worldwide by banks, commodity funds and futures traders. British pound futures contracts began trading in 1975, while options on futures contracts started trading in 1985.

British Pound Trading Prices/Rates

The contract’s size is 62,500 British pounds per contract. Trading occurs in $.0001 per British pound, or $6.25 per contract. Futures contracts are quoted in U.S. dollars per pound.  British pound futures trade in a quarterly cycle six months in March, June, September, and December.

Trading Unit
British Pound Futures: 62,500 lbs. sterling (British pounds)
British Pound Options: One British pound futures contract

Trading Months
British Pound Futures: Six months in the March quarterly Cycle March, June, Sep, Dec.
British Pound Options: Four months in the March cycle and two months not in the March cycle(serial months), plus 4 weekly Expiration options

Point Description
British Pound Futures: 1 point=$.0001 per pound sterling=$6.25 per contract
British Pound Options: 1 point = $.0001 per pound sterling=$6.25 per contract

British Pound Trading Software

Having the right tool for the job is critical.  Ask any trader what trading tools or types of financial analysis he is using and you're probably going to hear Stochastics, Fibonacci, MacD, moving averages, etc.  Trading software can be used to augment an existing approach by supplying a broadened perspective. The key to a British Pound trading system is its ability to forecast moving averages! One of the better software products is VantagePoint trading software that will help to “see” what is likely to happen in the market that you are trading before other traders (using only single-market analysis) catch wind of it. Frequently the crossover indicator flashes an “early warning” that the British Pound market is likely to make a top or bottom - before it actually happens!