T & K Futures and Options Inc.


1-800-926-4468
1-772-873-9674


Home
Open Account
Margins
Contract Specs
Charts & Quotes
Education
Risk Disclosure
Links


 

 


 

 

 

 

 

 

 

 


 

British Pound Currency Futures and Options

 

 

The No Nonsense Guide to Buying and Selling Options

 

*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

**Click Here Now! 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

 

EDUCATION | PRIVACY POLICY | HOME
Copyright © 2004-2015 TKFutures Inc. All Rights Reserved.

 
The information presented in this commodity futures and options site is not investment advice and is for informational purposes only. No guarantees are being made to its accuracy or completeness. This information can be considered a solicitation to enter into a derivatives trade. Investing in futures and options carries substantial risk of loss and is not suitable for some people. Past or simulated performance is not indicative to future results.