TFEX FX Futures
TFEX FX FUTURES or Currency Futures are futures contracts underlying foreign exchange rates, including EUR/USD Futures based on the Euro to US Dollar exchange rate, and USD/JPY Futures based on the US Dollar to Japanese Yen exchange rate. These currency pairs are popular for trading both domestically and internationally.
Summary of EUR/USD Futures Contract Specifications
| Item | EUR/USD Futures |
|---|---|
| Underlying Asset | Euro to US Dollar Exchange Rate (EUR/USD Exchange Rate) |
| Ticker Symbol | EURUSD |
| Settlement Month | March (H), June (M), September (U), and December (Z), counting no more than 1 nearest quarter. |
| Price Quotation | Quoted in USD per 1 EUR |
| Contract Size | 30,000 times the underlying asset price (Multiplier) |
| Minimum Tick Size | 0.0001 USD or equivalent to 3 THB per contract |
| Position Limit | 50,000 contracts |
| Daily Price Limit | ±2.5% from the latest settlement price. If trading reaches Ceiling & Floor, trading will be temporarily halted, and the Daily Price Limit will be expanded to ±5% from the latest settlement price. |
| Trading Hours | Pre-open: 09:15 - 09:45 Morning session: 09:45 - 12:30 Pre-open: 13:45 - 14:15 Afternoon session: 14:15 - 16:55 Pre-open: 18:45 - 18:50 Night Session: 18:50 - 23:55 |
| Final Settlement Price | Uses the exchange rate announced by Refinitiv (Thomson Reuters: WM Spot Rate) at 11:00 AM on the last trading day as the reference price to calculate the Final Settlement Price. |
| Last Trading Day | The business day prior to the last business day of the settlement month for that futures contract, with trading on the last day ending at 11:00 AM. |
| Settlement Method | Cash Settlement |
Knowledge Before Investment
What is TFEX FX Futures?
FX Futures or Currency Futures are futures contracts underlying foreign exchange rates, including EUR/USD Futures based on the Euro to US Dollar exchange rate, and USD/JPY Futures based on the US Dollar to Japanese Yen exchange rate. These currency pairs are popular for trading both domestically and internationally.
Reading Currency Pairs
Base Currency / Quote Currency
- The EUR/USD exchange rate means how many USD 1 EUR can be exchanged for.
- The USD/JPY exchange rate means how many JPY 1 USD can be exchanged for.
Suppose: EUR/USD current price is around 1.0750 Dollars. This reads as 1 EUR = 1.0750 USD (1 Euro = 1.0750 Dollars) or 1 Euro can exchange for 1.0750 Dollars.
Price quotations move according to exchange rates in global markets. FX Futures facilitate investors in analyzing currencies and making profits in Thai Baht without the hassle of exchanging physical currency.
Investors can trade EUR/USD Futures and USD/JPY Futures in the Thailand Futures Exchange (TFEX) with confidence using a derivatives account opened with a TFEX broker under the supervision of the SEC.
How to make profit from FX Futures in TFEX?
Factors causing currency appreciation or depreciation
In the FX Futures market, trading occurs on currency pairs. Appreciation or depreciation depends on economic factors of the compared pair, such as economic growth, economic recovery, current account balance, or policy interest rates, etc. Capital will flow to where it gains more benefit, causing currency appreciation.
How to read FX Futures charts
- An upward EUR/USD chart means EUR is appreciating or USD is depreciating.
- A downward EUR/USD chart means EUR is depreciating or USD is appreciating.
Profiting from price direction based on appreciation and depreciation
- Buy Low and Sell High (Expecting currency pair price to go up)
- Sell High and Buy Low (Expecting currency pair price to go down)
Advantages of Trading FX Futures in TFEX
1. Confidence in a transparent, standardized, and reliable trading system protected by law
- International standard, transparent, and reliable trading system.
- Trade through licensed brokers without fear of fraud or default.
- FX Futures trading in TFEX is protected under the Derivatives Act, regulated by the SEC, and approved by the Bank of Thailand.
2. Profit and loss calculated in Thai Baht with a fixed multiplier, no currency exchange needed
Investors can place margin in Thai Baht without converting to foreign currency, avoiding exchange fees and spreads. The system calculates profit and loss in Thai Baht using a fixed multiplier for each currency pair.
3. Trade according to global currency pair prices with fast and convenient price tracking and analysis
Designed for price movements to reflect global currency pairs. Investors can conveniently and quickly analyze and track factors affecting prices day and night (during trading hours) and place orders immediately via various channels and applications.
4. Lower investment required with high profit potential using appropriate leverage
Start with an initial margin of approximately 3% (around 600 - 800 THB), boosting returns up to 30-50 times (Leverage), an appropriate ratio especially for beginners. Investors should study money management to reduce trading loss risks.
