Summary of USD/JPY Futures Contract Specifications
| Item | USD/JPY Futures |
|---|---|
| Underlying Asset | US Dollar to Japanese Yen exchange rate (USD/JPY Exchange rate) |
| Ticker Symbol | USDJPY |
| Contract Months (Settlement Month) | March (H), June (M), September (U), and December (Z), up to 1 nearest quarter |
| Price Quotation | Quoted in JPY per 1 USD |
| Contract Size | 300 times the underlying asset price (Multiplier) |
| Minimum Tick Size | 0.01 JPY, equivalent to 3 THB per contract |
| Position Limit | 50,000 contracts |
| Daily Price Limit | ±2.5% of the latest settlement price. If trading reaches Ceiling & Floor, trading will be temporarily halted, and the Daily Price limit will expand to ±5% of 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 contract settlement month. Trading on the last trading day ends at 11:00 AM. |
| Settlement Method | Cash Settlement |
Knowledge Before Investing
What is TFEX FX Futures?
FX Futures or Currency Futures are futures contracts referencing foreign exchange rates, such as 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, which are popular currency pairs traded locally and internationally.
Reading Currency Pairs
Base Currency / Quote Currency
- The exchange rate EUR/USD means 1 EUR can be exchanged for how many USD.
- The exchange rate USD/JPY means 1 USD can be exchanged for how many JPY.
Suppose that EUR/USD price is currently around 1.0750 Dollars. It is read as 1 EUR = 1.0750 USD (1 Euro = 1.0750 Dollars) or 1 Euro exchanges for 1.0750 Dollars.
Prices move according to global FX exchange rates. FX Futures facilitate currency analysis and allow investors to profit in Thai Baht without complex currency conversions.
Investors can trade EUR/USD Futures and USD/JPY Futures in TFEX with confidence using a derivatives account opened with a TFEX broker under SEC supervision.
How to profit from FX Futures in TFEX?
Factors causing currency appreciation or depreciation
FX Futures trade on currency pairs. Appreciation or depreciation depends on economic factors comparing the pair, such as economic growth, recovery, current account balance, or policy interest rates. Capital flows toward better yields, driving currency appreciation.
How to read FX Futures charts
- EUR/USD chart in an uptrend means EUR is appreciating or USD is depreciating.
- EUR/USD chart in a downtrend means EUR is depreciating or USD is appreciating.
Profiting from price directions based on currency strengthening and weakening
- Buy low and sell high (predicting currency pair price will rise)
- Sell high and buy low (predicting currency pair price will decrease)
Advantages of trading FX Futures in TFEX
1. Confidence in a transparent, standardized, reliable trading system with legal protection
- International standard trading system, transparent and reliable.
- Trade through licensed brokers with no worries about fraud or broker shutdowns.
- FX Futures trading in TFEX is protected by the Derivatives Act, supervised by the SEC, and approved by the Bank of Thailand.
2. Calculate profit and loss in THB with a fixed multiplier without currency exchange hassle
Investors can place margin in THB without converting to foreign currencies, avoiding conversion fees and price spreads. The system calculates P&L in THB using a fixed multiplier for each currency pair.
3. Trade according to global market rates with convenient, fast tracking and analysis
Designed to reflect global currency pair movements, enabling investors to quickly analyze and track factors affecting prices day and night (during trading hours) and submit orders instantly through various channels and applications.
4. Low capital requirement with appropriate leverage to increase return potential
Initial margin starts at approximately 3% (around 600 - 800 THB), multiplying return potential up to 30-50 times (leverage), which is a suitable leverage ratio especially for beginners. Investors should study money management to manage potential risk.
