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Futures Measures

Commodity Currency Trading: NZD & AUD

Futures Measures

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Historically, the Australian Dollar (/6A) and the New Zealand "Kiwi" Dollar (/6N) have shared a high positive correlation. Today, Pete and Katie discuss how an upcoming interest rate change by the Royal Bank of New Zealand could influence the value of the Kiwi and subsequently the spread between these two commodity currencies.

Australian Dollar Contract Specs
  • Symbol: /6A
  • Contract Size: $100,000 AUD
  • Delta: 100,000
  • Minimum Tick: 0.0001
  • Tick Value: $10
  • Expiration: March, June, September, December
New Zealand Dollar Contract Specs
  • Symbol: /6N
  • Contract Size: $100,000 NZD
  • Delta: 100,000
  • Minimum Tick: 0.0001
  • Tick Value: $10
  • Expiration: March, June, September, December

Why do we subtract these products from one another rather than divide? Well, there are several ways to look at and set up pairs trades, but staying consistent within the commodity currencies (/6C, /6A, /6N) allows us better trade location given the similar notional value of the products currently.

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