Canadian Dollar Futures

canadian-dollar 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.
Source: 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.

Source: Barchart

Last updated May 2013

Additional Info

Recent Posts on the Canadian Dollar

  • Currencies Commentary for 2015-05-12 (5/12/2015) - With the twin peak investments of US Treasuries and US equities seeing severe technical damage and the latest US scheduled data flow leaving more growth questions than evidence of forward progression, it is not surprising to see the Dollar trading lower.
  • Currencies Commentary for 2015-05-05 (5/5/2015) - The Dollar continues to claw out minor gains overnight but today's initial scheduled data flows aren't expected to provide the Dollar with a distinct lift. In fact, the ISM Non-Manufacturing reading is expected to downtick and that could temper the Dollar's four day rally effort.
  • Pre-Dawn Targeting (2-18) (2/18/2015) - If you were thinking that a CHART WATCH! webinar today would be a good idea…then we are on the same page! Sign up for this afternoon’s webinar and join us if you can: CHART WATCH! Chart Reviews and Markets To Watch with The Cullen Outlook http://www.danielstrading.com/webinar/chart-watch-with-the-cullen-outlook/