Canadian Dollar - FX Futures Trading
Canadian Dollar Futures Trading Explained
Canadian dollar futures traders can manage the risks associated with currency rate fluctuation and take advantage of profit opportunities stemming from changes in Canadian dollar rates.
CME Canadian dollar futures contracts first started trading in 1972 as part of the International Monetary Market, a division of the Exchange. Canadian dollar Futures contracts are quoted in U.S. dollars per Canadian dollar.
Canadian Dollar Futures Contract Prices/Rates
The CME Canadian Dollar future contract’s trading unit is 100,000 Canadian dollars. The contract moves in 1 point tick increments = $.0001 per Canadian dollar movement equals $10 per contract. Trading may also occur in $.00005 per Canadian dollar increments, or $5.00 per contract, for Canadian dollar intra-currency spreads executed on the trading floor and electronically. Futures contracts trade six months in the March quarterly cycle, March, June, September, and December
Canadian Dollar Trading Software
Having the right tool for the job is critical. Ask any Canadian Dollar 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 currency 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 Canadian Dollar market is likely to make a top or bottom - before it actually happens!