Before the Canadian Parliament established the Canadian Dollar in 1871, practically every province was conducting transactions in local currencies. Today, the Canadian Dollar value has floated ever since 1970, and is the 7th most traded currency in the world. Just as in the U.S., slang for a dollar is a “buck”, which dates back to the same term used to describe the value of a beaver pelt in the 17th century.
|Canadian Dollar Contract Specifications|
|Contract Size||100,000 Canadian dollars|
|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||6,000 contracts|
|Ticker Symbol||CME Globex Electronic Markets: 6C|
Open Outcry: CD
AON Code: LK
|Minimum Price Increment||$.0001 per Canadian dollar increments ($10.00/contract). $.00005 per Canadian dollar increments ($5.00/contract) for CAD/USD futures intra-currency spreads executed on the trading floor and electronically, and for AON transactions.|
|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 business day immediately preceding the third Wednesday of the contract month (usually Tuesday).|
|Block Trade Eligibility||Yes.|
|Block Minimum||100 Contracts|
|Exchange Rules||These contracts are listed with, and subject to, the rules and regulations of CME.|
Canadian Dollar Facts
Canadian dollar 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 Canada regulates monetary policy for its currency. 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
Canadian Dollar News Articles
- Loonie aims higher after weakest start to year in four decades (2/13/2014) - The Canadian dollar has been slowly recovering from its worst start to a year since the early 1970s, according to Bloomberg.
- Aussie holds advance against greenback (1/28/2014) - The Australian dollar on Tuesday held on to its biggest rise in about two weeks against the world's reserve currency as market sentiment indicated the monetary unit's recent losses were overdone, according to Bloomberg.
- Aussie dips against all top rivals (1/23/2014) - The Australian dollar on Thursday dove in value on Thursday against each of its 16 major rivals on Thursday after China, the biggest destination of its exports, released weaker-than-expected data, according to Bloomberg.
- Loonie drops slightly during quiet period (12/30/2013) - Canada's currency slipped slightly during the end of the holiday season.
- Loonie minimally changed against greenback (12/16/2013) - The Canadian dollar was ebbing and flowing against its southerly rival as the trade week began as the U.S. Federal Reserve prepared to meet for two days early this week to discuss monetary stimulus policy, according to Bloomberg.
- Loonie pulled down by ongoing government shutdown in the U.S. (10/2/2013) - The Canadian dollar slipped on Wednesday against its major counterparts as the U.S. government shutdown reached its second day, Bloomberg reports.
- Loonie impacted by U.S. government shutdown (10/1/2013) - The Canadian dollar slumped against the majority of its counterpart currencies on Tuesday as the U.S. government began shuttering amid feuding political parties' inabilities to conduct successful negotiations, Bloomberg reports.
- Loonie slides as U.S. budget negotiations continue (9/25/2013) - The monetary unit of Canada sank to its seven-day trough on Wednesday against the world's reserve currency as concerns spread about budget negotiations in its top partner for trade and commerce, according to Bloomberg.
- Loonie rises against greenback after interest rates left intact (9/4/2013) - The Canadian dollar edged higher against the world's reserve currency on Wednesday in the aftermath of the Bank of Canada deciding to leave borrowing costs intact, Bloomberg reports.
- Canadian dollar ceases three days of losses (8/8/2013) - The Canadian dollar on Thursday climbed against the world's reserve currency as a consequence of China releasing strong commerce data, Bloomberg reports.
Canadian Dollar Blog Posts
- Beyond the “Spotlight” (8/12/2013) - 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.
- Developing Trade in March Canadian Dollar (6CH3 DAILY) (12/12/2012) - This is a sample entry from Tom Dosdall’s email newsletter, Dosdall Daily Edge, published on December 12, 2012. The Canadian is attempting to grind higher again today and our TAS Tools are confirming a bullish trade opportunity. The market is expecting a friendly announcement toward further QE at today’s (US) FOMC meeting which would likely... Read More.
- Market Spotlight: US Dollar Index (10/10/2012) - The two key factors affecting a currency’s value are central bank monetary policy and the trade balance.
- The US Dollar and Inflation (9/28/2012) - The US Dollar Index is a measure of the value of the United States Dollar compared to a basket of currencies weighted accordingly: Euro 57.6 % weight Japanese yen 13.6 % weight Pound sterling 11.9 % weight Canadian dollar 9.1 % weight Swedish krona 4.2 % weight Swiss franc 3.6 % weight The US Dollar... Read More.