British Pound Currency Futures and Options
Learn the most effective strategies for buying and selling options
on futures contracts. Also learn producer and consumer hedging
strategies.
*The information contained within this webpage comes from sources believed to be
reliable. No guarantees are being made to the content's accuracy or
completeness.
Here is the currency option brochure courtesy of the CME
group.
Click Here.
Financial institutions, investment managers,
corporations and private investors can use British
Pound futures and options on British Pound futures to manage the
risks associated with currency rate fluctuation (currency hedging) and
to take advantage of profit opportunities stemming
from changes in currency rates.
Currency futures and currency option trading have become very popular in recent
years and ergo more liquidity to British Pound future and option markets has
followed.
The British pound is the currency of the United
Kingdom as well as a major currency traded worldwide
by corporations, institutions, banks, commodity
funds and futures traders. Arbitrage in British
pound currency futures trading at the Chicago Mercantile
Exchange (CME) helps to keep the
contract in line with larger scale worldwide bank
and institutional trading.
CME began trading British pound currency futures contracts in
1975, while British pound options on futures contracts started
trading in 1985. Currently CME offers markets for
trading British pounds futures and options on
futures on its GLOBEX electronic trading platform as
well as on its trading floor. British pound currency options on futures contracts traded at CME® are
designed to reflect changes in the U.S. dollar value
of the pound. British Pound option contract carry the same leverage as the
British Pound future and options contracts and are traded Monday through Friday on the floor
of the CME. Many savvy investors hedge their currency risks using the British
Pound futures and options markets for their currency hedging needs.
The contract’s size is 62,500 British pounds per
contract. Trading occurs in $.0001 per British
pound, or $6.25 per contract. British pound futures contracts are
quoted in U.S. dollars per pound, and call for
physical delivery at expiration. Physical delivery
takes place on the third Wednesday of the contract
month, in the country of issuance at a bank
designated by the CME Clearing House. Exercised
options on futures contracts are settled by the
delivery of future contracts.
British pound currency futures trade on six months
in the March quarterly cycle, Mar, Jun, Sep, Dec.;
and trade as British pound/Japanese yen, British
pound/Swiss Franc, Euro FX/British pound as part of
cross rate currency futures. Options on futures
contracts trade four months in the March cycle and
two months not in the March cycle (serial months),
plus four weekly expirations.
*Contract information changes from time to time. Please
click here to see the most recent
contract specifications and
click here for the most recent trading hours.
British Pound Currency Futures and British Pound
Currency Options
Contract Specifications
Trading Unit
British Pound Future: 62,5000 lbs. sterling
(British pounds)
British Pound Options: One British pound futures
contract
Trading Hours
British Pound
Futures: 7:20 a.m. - 2:00 p.m. LTD (9:16a.m.) GLBX2
Mon/Thurs 4:30p.m.-4:00p.m. Sun " Holiday
5:30p.m.-4:00p.m.
British Pound
Options: 7:20 a.m. - 2:00 p.m. LTD (2:00a.m.) GBLBX2
Mon/Thurs 2:30p.m. to 7:05a.m. Sun " Holiday 5:30
p.m. to 7:05 a.m.
Trading Months
BP Future: Six months in the March
quarterly Cycle March, June, Sep, Dec.
BP Options: Four months in the March
cycle and two months not in the March cycle (serial
months), plus 4 weekly Expiration options
Point Description
BP Futures: 1 point=$.0001 per pound
sterling=$6.25 per contract
BP Options: 1 point = $.0001 per pound
sterling=$6.25 per contract
Minimum Price Fluctuation
British Pound Futures-regular: 0.0002=$12.50,
calendar spread: 0.0001=$6.25
British Pound Futures-regular: 0.0001=$6.25,
calendar spread: 0.0001=$6.25
British Pound Options-regular: 0.0002=$12.50, cab:
0.0001=$6.25, special "half tick" 0.0001=$6.25 for
premium, 0.0010, spreads w/net premium, 0.0010, non
generic combo trades with total premium, 0.0020.
British Pound Options-regular: 0.0002=$12.50, cab:
0.0001=$6.25
Options Strike Prices
Strikes will be listed at $0.20 per pound sterling,
e.g. $1.40, $1.42, $1.44, etc.
For the first seven expirations, additional strike
prices will be listed at intervals of $.010, e.g.
$1.33, $1.34, $1.35, etc
Trading Symbol
BP
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for actual British Pound futures and options, quotes, prices, expirations, charts .....
Also visit:
Japanese Yen Futures,
Euro Currency Futures,
Canadian Dollar Futures,
Swiss Franc Futures and
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