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John Moffat.
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dazhong0703
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Question “Polytot”, Why should the currency exchange sign be $/£, but below put “Philadelphia SE £/$ options £3,1250” and “£/$ currency futures (CME, £62,500)”?
Thank you.dazhong0703
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Is there tick value for currency futures or not? One lecturer’s workings show tick value, another do not.
John Moffat
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It is always like that. For exchange rates $/£ is giving the value of 1£ in $’s. The reason the futures are £/$ is simply because they have to be purchased in units based on £’s (in your example contracts of £62,500).
There is a tick value for currency futures – it is 0.0001.
However you do not need to use ticks in the exam (I never bother myself) unless the question specifically asks you to.
dazhong0703
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