What are Currency Futures? A Beginner’s Guide

Currency futures (also called FX futures) are standardized contracts that let you trade the future value of foreign currencies like the Euro, Japanese Yen, British Pound, and more. These contracts are widely used by traders, institutions, and businesses to hedge against currency risk or speculate on exchange rate moves.

In this guide, we’ll cover:

What currency futures are and how they work
Why traders and businesses use them
The most popular FX contracts on MetroTrade
Standard vs. micro currency futures
Key benefits and risks
How to get started with MetroTrade

What Are Currency Futures?

Currency futures are contracts that track the exchange rate between a foreign currency and the U.S. dollar. Instead of trading physical currency, you’re speculating on whether a currency will strengthen or weaken over time.

These contracts are traded on regulated exchanges like the CME and are available in both standard and micro sizes. All currency futures on MetroTrade are cash-settled, meaning no actual delivery of currency takes place.

Key takeaway: FX futures let you trade the world’s largest financial market — currencies — in a standardized, regulated, and leveraged format.

How Do Currency Futures Work?

Let’s say you believe the Euro will strengthen against the U.S. dollar. You buy a Euro FX Futures contract.

If the EUR/USD exchange rate rises, you profit.
If it falls, you take a loss.

Each contract includes:

A contract size: (e.g., 125,000 EUR for /6E)
A tick size: The minimum price move
A tick value: The dollar amount of each tick
An expiration date
A margin requirement to open and maintain a position

Like other futures, you can go long (buy) or short (sell) depending on your market outlook.

Who Uses Currency Futures?

Traders

Speculate on the strength or weakness of global currencies like the Euro, Yen, or Pound, often based on macroeconomic news or central bank decisions.

Businesses

Multinational companies use FX futures to lock in exchange rates and protect their revenues or expenses from currency fluctuations.

Institutional Investors

Funds use FX futures to hedge currency exposure in global portfolios or to express macro views on global currencies.

Popular Currency Futures Contracts

Here’s a breakdown of commonly traded FX futures available on MetroTrade:

Code	Product Name	Contract Size	Tick Size	Tick Value
/6E	Euro FX Futures	125,000 EUR	0.00005	$6.25
/M6E	Micro Euro FX Futures	12,500 EUR	0.0001	$1.25
/6J	Japanese Yen Futures	12.5 million JPY	0.0000005	$6.25
/MJY	Micro Japanese Yen Futures	1.25 million JPY	0.000001	$1.25
/6A	Australian Dollar Futures	100,000 AUD	0.0001	$10.00
/M6A	Micro Australian Dollar	10,000 AUD	0.0001	$1.00
/6B	British Pound Futures	62,500 GBP	0.0001	$6.25
/M6B	Micro British Pound	6,250 GBP	0.0001	$0.625
/6C	Canadian Dollar Futures	100,000 CAD	0.0001	$10.00
/MCD	Micro Canadian Dollar	10,000 CAD	0.0001	$1.00

Note: These contracts trade nearly 24 hours a day from Sunday 5 PM to Friday 4 PM (EST), with one-hour daily breaks.

Speculating vs. Hedging in FX Futures

Speculation

Traders use FX futures to take advantage of exchange rate moves. For example:

Long /6E if you expect the Euro to strengthen
Short /6J if you think the Yen will weaken

You can pair FX trades with global events like rate decisions, inflation reports, or geopolitical news.

Hedging

Businesses use FX futures to lock in favorable exchange rates and reduce uncertainty:

A U.S. importer paying in Euros may buy /6E to fix costs
A global exporter expecting CAD revenue may sell /6C to hedge currency risk

Standard vs. Micro Currency Futures

Feature	Standard Contracts	Micro Contracts
Size	Full-size (e.g. 125,000 EUR)	1/10th size (e.g. 12,500 EUR)
Capital Required	Higher	Lower
Tick Value	Larger swings	Smaller, precise moves
Best For	Experienced or institutional traders	Individual or small account traders

Micro contracts offer more flexibility and control, especially for newer traders.

Contract Examples

Euro FX Futures

/6E: 125,000 EUR × 1.20 = $150,000
Tick size: 0.00005
Tick value: $6.25
Micro /M6E: 12,500 EUR = $15,000 (tick = $1.25)

Japanese Yen Futures

/6J: 12.5M JPY × 0.009 = $112,500
Tick size: 0.0000005
Tick value: $6.25
Micro /MJY: 1.25M JPY = $11,250 (tick = $1.25)

Australian Dollar Futures

/6A: 100,000 AUD × 0.75 = $75,000
Tick size: 0.0001
Tick value: $10.00
Micro /M6A: 10,000 AUD = $7,500 (tick = $1.00)

British Pound Futures

/6B: 62,500 GBP × 1.30 = $81,250
Tick size: 0.0001
Tick value: $6.25
Micro /M6B: 6,250 GBP = $8,125 (tick = $0.625)

Canadian Dollar Futures

/6C: 100,000 CAD × 0.80 = $80,000
Tick size: 0.0001
Tick value: $10.00
Micro /MCD: 10,000 CAD = $8,000 (tick = $1.00)

Key Benefits of Currency Futures

Global Market Access: Trade currencies tied to the world’s largest economies.

Built-in Leverage: Control large notional value with smaller margin requirements.

Hedge Currency Risk: Protect against adverse currency movements tied to global sales, supply chains, or international investing.

High Liquidity: Major contracts like /6E and /6J trade with strong volume and tight bid-ask spreads.

Transparency and Regulation: CME FX futures are standardized, regulated, and centrally cleared, unlike over-the-counter FX.

Risks of Currency Futures

Leverage Risk: Small currency moves can lead to large dollar swings due to high notional value.

Geopolitical Volatility: Currencies often react quickly to central bank news, elections, wars, and economic shocks.

Contract Expiration: All FX futures expire. Long-term traders must roll contracts to maintain exposure.

Complexity: Tick sizes, lot values, and currency conversions require a learning curve. Micro contracts help reduce risk while learning.

How To Start Trading Currency Futures

Open a MetroTrade account
No minimum deposit required for access to FX futures.
Choose your currency
Start with a liquid, familiar pair like the Euro, Yen, or Pound.
Learn the specs
Review tick size, tick value, trading hours, and margin.
Use demo trading
Practice without risk before trading live.
Manage your risk
Set stop-loss orders, avoid oversized positions, and stay updated on economic calendars.

Final Thoughts

Currency futures offer a powerful way to participate in the global forex market with all the benefits of leverage, liquidity, and regulation. Whether you’re trading macroeconomic trends or protecting global revenue streams, FX futures are one of the most efficient tools available.

Start with micro contracts, build your knowledge, and trade with discipline.

Ready to trade currency futures?
Explore Contracts on MetroTrade

Or try it risk-free with our Demo Trading Account

Frequently Asked Questions

What are currency futures?

Currency futures (also called FX futures) are contracts that let you buy or sell a foreign currency at a set price on a future date. You’re trading the price movement of exchange rates, not the actual currency.

What are the most popular currency futures?

Key contracts include /6E (Euro), /6J (Japanese Yen), /6B (British Pound), /6A (Australian Dollar), and /6C (Canadian Dollar. Micro versions like /M6E, /MJY, and /M6B offer smaller sizing for retail traders.

Who uses currency futures?

Traders use FX futures to speculate on exchange rate moves. Businesses and global investors use them to hedge currency risk tied to cross-border transactions or international portfolios.

How do micro currency futures work?

Micro contracts are 1/10th the size of standard futures, offering lower tick values, reduced margin requirements, and more flexible position sizing—ideal for newer or smaller account traders.

What are the risks of trading currency futures?

Risks include leverage-related losses, volatility from economic or geopolitical events, and the need to manage contract expiration and rollovers. Small price moves can lead to large swings in account value.

How do I start trading currency futures?

Open a MetroTrade account, choose a liquid contract like /6E or /M6E, learn the tick values and specs, practice in a demo account, and manage your risk with stops and sizing discipline.