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|
|Trading Hours||CME Globex: 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|
|Minimum Price Fluctuation||$.0001 per Canadian dollar increments ($10.00/contract). $.00005 per Canadian dollar increments ($5.00/contract) for CAD/USD futures intra-currency spreads executed electronically.|
|Product Code||CME Globex: 6C|
|CME ClearPort: C1|
|Listed Contracts||Twenty months in the March quarterly cycle (Mar, Jun, Sep, Dec)|
|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).|
|Settlement Procedures||Physical Delivery – Canadian Dollar Settlement Procedures|
|Position Accountability||6,000 contracts|
|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 Group|
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 September 2015
Recent Posts on the Canadian Dollar
- Trade Spotlight: Futures (Canadian Dollar) (2/22/2017) - This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight: Futures, published on Tuesday, February 21, 2016. There is a trade opportunity based on Trend Line breakout today in the Canadian Dollar futures market. The MACD and Stochastic indicators are both bearish, but the Trend Seeker is still up though with a weak… Read more.
- November 22- Sell Short Day in Canadian Dollar Futures (11/22/2016) - The Taylor Trading Technique is based on the concept that markets move in cycles; that a move in one direction will be followed be a reactive move in the opposite direction. Knowing this can allow us to anticipate what a market may be likely to do on a given day. On Tuesday the Canadian Dollar… Read more.
- The Cullen Outlook – TRADE IDEA (Canadian Dollar) (8/10/2016) - Take a look at the Canadian Dollar set-up!