Topic 2: Futures — The Introduction

Key Concepts

Why Futures for Forex

• Cannot see real volume on forex — must use futures equivalents
• Futures are standardized contracts traded on exchanges (CME)
• Real volume, real order flow, real institutional data

Futures Symbol Mapping

Currency Futures:

• 6A = AUD/USD
• 6B = GBP/USD
• 6C = CAD/USD
• 6E = EUR/USD
• 6J = JPY/USD
• 6S = CHF/USD
• 6N = NZD/USD
• 6M = MXN/USD

Commodities:

• GC = XAU/USD (Gold)
• CL = Crude Oil
• BRN = Brent Oil
• SI = Silver
• NG = Natural Gas
• HG = Copper

Indices:

• ES = S&P500
• NQ = Nasdaq 100
• YM = Dow Jones
• DX = Dollar Index
• FDAX = DAX 30

Crypto:

• BTC = Bitcoin
• MBT = Micro Bitcoin

Tick Values

• Each contract has a unique tick (minimum price movement)
• CAD/USD (6C): tick = $0.0001 per CAD = $10 per tick (100,000 CAD contract)
• CHF/USD (6S): tick = $0.0001 per CHF = $12.50 per tick (125,000 CHF contract)

Contract Sizes

• Standard, Mini (half standard), E-Mini (1/10th standard)
• E-Minis ideal for new traders: more liquidity, lower margin
• Trade 23 hours/day Mon-Fri