The British Pound—or ‘pound sterling’—is the oldest currency still in use today, with its history stretching as far back as Anglo-Saxon England in the middle 8th century. Today, it is the fourth-most-traded currency in the foreign exchange market, and it is also the third most held reserve currency in all global reserves. As one of the highest-valued currencies in the world for many years, it is no wonder the British Pound has maintained its high popularity amongst foreign currency traders throughout history.
|British Pound Contract Specifications|
|Contract Size||62,500 British pounds|
|Contract Month Listings||Six months in the March quarterly cycle (Mar, Jun, Sep, Dec)|
|Settlement Procedure||Physical Delivery
Daily FX Settlement Procedure
Final FX Settlement Procedure
|Position Accountability||10,000 contracts|
|Ticker Symbol||CME Globex Electronic Markets: 6B
Open Outcry: BP
AON Code: LP
|Minimum Price Increment||$.0001 per British pound increments ($6.25/contract).|
|Trading Hours||Open Outcry (RTH): 7:20am-2:00pm CT|
|Globex (ETH): Sundays: 5:00pm – 4:00pm CT next day.
Monday – Friday: 5:00pm – 4:00pm CT the next day, except on Friday – closes at 4:00pm and reopens Sunday at 5:00pm CT.
|CME ClearPort: Sunday – Friday 5:00pm – 4:15pm CT with a 45–minute break each day beginning at 4:15pm|
|Last Trade Date||9:16 a.m. Central Time (CT) on the second business day immediately preceding the third Wednesday of the contract month (usually Monday).|
|Block Trade Eligibility||Yes.|
|Block Minimum||100 Contracts|
|Exchange Rules||These contracts are listed with, and subject to, the rules and regulations of CME.|
British Pound Facts
British Pound futures allow traders to assess value against the U.S. dollar, as well as the opportunity to address risk from currency fluctuations in other foreign trade markets.
Currency rates are determined by a one base currency quoted in relation to a different currency. Major currencies that are traded are floating. Central bank monetary policies can affect the value of currency. The Bank of England regulates monetary policy for the United Kingdom. For instance, low interest rates dictated as policy can be bearish for currency value because new money is being pumped into the market. This is unappealing to foreign investors because returns yield those low interest rates. In contrast, high interest rates set as policy are bullish and appealing to foreign investors because of high interest yields from the returns. Currency values can be also be affected by the nation’s current account balance. An excess or influx in the balance is considered to be bullish, while a deficit or drainage is considered to be bearish. Economic stability and investment in the country also help strengthen currency values because international investors are likely to buy into that country’s favorable markets.
Last updated May 2013
British Pound News Articles
- Pound climbs against dollar, euro as BOE chief prepares to speak (12/9/2013) - The English pound rose against the world's reserve currency as Governor Mark Carney with the Bank of England (BOE) prepares to speak in New York on Monday, according to Bloomberg.
- Pound endures third day of losses against euro (12/5/2013) - The monetary unit of England marked a third trading session of losses against the shared currency of the European Union on Thursday as policy makers with the Bank of England (BOE) prepare to issue their monthly policy decision, according to Bloomberg.
- Pound pushes to three-week high against greenback (11/18/2013) - The monetary unit of England touched its top value in three weeks against the world's reserve currency on Monday as the central bank prepared to release minutes from the policy meeting earlier this month, Bloomberg reports.
- Pound drops against dollar after retail sales fall (11/14/2013) - The monetary unit of England dove on Thursday against the world's reserve currency after four trading sessions of losses against its rival, Bloomberg reports.
- Pound dives against dollar amid slipping regional inflation (11/12/2013) - The English pound fell to its two-month low against the world's reserve currency as a consequence of a report indicating regional inflation dropped in October more than economists forecast, Bloomberg reports.
- Pound holds gains against euro, dollar (11/11/2013) - The English pound was moderately changed on Monday as the chief of the Bank of England prepared for the quarterly release of forecasts for inflation data and additional economic information later this week, Bloomberg reports.
- Pound hovers as BOE set to adjourn policy meeting (11/7/2013) - The monetary unit of England was hovering on Thursday against the world's reserve currency as policy makers with the Bank of England prepared to announce a policy decision, Bloomberg reports.
- Pound marks three days of gains against greenback (11/6/2013) - The monetary unit of the U.K. achieved a third-straight day of advances on Wednesday against the world's reserve currency as a consequence of economic data indicating industrial generation rose more than projected in September, Bloomberg reports.
- Pound propelled higher by strong independent service production data (11/5/2013) - The English pound rose to its 30-day height against the common currency of the European Union on Tuesday in the aftermath of economic data indicating service production in October developed more quickly than any time since 1997, Bloomberg reports.
- Pound rises after gains to retail sales data (10/17/2013) - The monetary unit of England climbed the most in about four weeks during the Thursday trade session after the release of stronger-than-forecast retail sales data, Bloomberg reports.
British Pound Blog Posts
- Beyond the “Spotlight” (2/4/2013) - The Trade Spotlight advisory service applies the GBE trading methodology (buying or selling commodity contracts based on breakouts of chart formations and technical indicators) to identify one to two trade setups per week.
- Market Spotlight: British Pound (7/11/2012) - The British Pound (or pound sterling) is the world's oldest currency still in use dating back to Anglo-Saxon England in the middle 8th century. It's the official currency of the United Kingdom, its Crown Dependencies, and the British Overseas Territories.