CME Euro FX futures and options allow you to take positions on the value of the euro currency versus the U.S. dollar. These deep and liquid currency contracts grant traders wide exposure to the economy of the Eurozone, a monetary union of 19 of the 28 European Union member states which have adopted the euro as their common currency. The Eurozone ranks as the fourth largest trading partner of U.S.
Euro FX futures and options are valuable tools for gaining or hedging exposure to the euro as well as managing exposures to the U.S. dollar. Given the importance of these two currencies in the world economy, you can see increased activity in times of global market volatility driven by interest rate changes, inflation announcements and other monetary policy changes as well as payroll, unemployment and geopolitical events.
Euro FX futures trade on CME Globex Sunday through Friday from 5 p.m. to 4 p.m. Central Time (CT), with daily trading breaks from 4 p.m. to 5 p.m. (CT), and is priced in U.S. dollars per euro. The Euro FX futures contract is available in standard [6E], e-mini [E7] and e-micro [M6E] contract sizes, allowing market participants to carefully calibrate levels of market exposure. Euro futures currently expire on a quarterly basis, and the contract’s minimum tick value is $6.25 for both standard size and E-mini Euro contracts, and $1.25 for the E-Micro contract.
Euro FX can also be traded as options in weekly, monthly and quarterly formats which expire on Fridays, and in both European- and American-style. Euro options markets are extremely liquid and allow tremendous flexibility in managing existing option positions across multiple expiration dates targeted trading based on market movement and the ability to trade high impact economic events.