Canadian Dollar Futures Margin & Contract Specifications

What are Canadian Dollar Futures?

Canadian Dollar Futures (CAD Futures) are one of the most representative currency futures products, launched by the Chicago Mercantile Exchange (CME). They are traded on the CAD/USD exchange rate.

Standard contract size: CAD 100,000

Tick size: 0.0001 USD = 10 USD

These contracts are widely used by global institutions and FX traders for hedging, leveraged trading, and spread strategies. With stable trading volume, high liquidity, and nearly round-the-clock trading from the Asian to U.S. sessions, CAD futures are suitable for investors with sufficient capital and risk management ability.

Whether for hedging import/export risks linked to the Canadian dollar or capturing opportunities from interest rate policies and oil price fluctuations, CAD futures serve as a prime trading tool.

Extended Products

• Micro Canadian Dollar Futures (Micro CAD Futures, MCD)

1/10 of the standard contract (CAD 10,000 notional).

Designed to lower the capital requirement and leverage exposure.

Each tick ≈ USD 1, offering more flexible risk control.

Ideal for retail traders, small-scale strategy testing, or fine-tuning positions.

• CAD/JPY FX Daily Futures (TFX)

Listed on the Tokyo Financial Exchange (TFX).

Based on the CAD/JPY rate with daily settlement and re-establishment.

Tailored for the Asian trading session, suited for high-frequency, short-term operations.

Helps hedge overnight risks and react quickly to yen–CAD movements, particularly favored by Japanese institutions and Asian traders.

Key Factors Affecting CAD Futures Prices

1. Crude Oil Prices

Canada is a major crude oil exporter, especially to the U.S. CAD is highly correlated with oil prices.

Rising oil prices → stronger export revenues → stronger CAD → higher futures prices.

Falling oil prices → weaker trade balance → weaker CAD.

2. Interest Rate Differentials (Canada vs. U.S.)

Since CAD/USD futures are tied to interest rate expectations, the relative stance of the Bank of Canada (BoC) and the Federal Reserve (Fed) matters.

BoC hike vs. Fed unchanged → CAD strengthens.

Example: A 25 bps BoC rate hike while Fed holds steady may attract capital inflows, boosting CAD.

3. U.S. Economic Data & Dollar Strength

As the contract is quoted in CAD/USD, USD moves have a direct impact.

Strong U.S. jobs or inflation data → stronger USD → weaker CAD futures.

Example: A strong U.S. Non-Farm Payrolls (NFP) report may trigger dollar buying and pressure CAD.

4. Canadian Economic Indicators

Domestic data such as employment, GDP, CPI, and retail sales shape expectations for BoC policy.

Rising CPI → tighter policy expectations → stronger CAD.

5. Trade Balance & Export Data

Canada’s economy relies heavily on exports, particularly energy and raw materials.

Weak exports or widening trade deficit → downward pressure on CAD.

6. Global Risk Sentiment

CAD is a commodity currency and tends to be sold during “risk-off” episodes.

Geopolitical risks or stock market selloffs → investors flock to safe-haven currencies (USD, JPY) → CAD weakens.

7. Speculative and Hedge Fund Positioning

COT (Commitments of Traders) reports show speculative net long/short positions, often reflecting future momentum.

Rising net longs → bullish CAD signal.

8. Correlation with Other Commodity Currencies

CAD often moves in tandem with AUD and NZD.

Rising commodity prices → joint appreciation of AUD/NZD/CAD.

Falling commodities → joint weakness.

 

Canadian Dollar Futures, along with their Micro contracts and CAD/JPY daily futures, form a highly flexible product suite for both North American and Asian markets.

CME CAD Futures: Ideal for hedging and after-hours trading.

Micro CAD Futures: Lower cost, suitable for strategy testing and scaling in/out.

TFX CAD/JPY Daily Futures: Asia-focused, aligned with yen flows, useful for intraday risk management.

Together, these contracts provide comprehensive tools for hedging, arbitrage, short-term trading, and global portfolio allocation. With a solid grasp of fundamentals and technicals, traders can effectively capture CAD-related market trends and execute strategies with precision.

Canadian Dollar Margin

How much money is needed to trade futures? At the beginning, the required margin is the initial margin. While holding a position, the margin after deducting floating profits and losses must remain above the maintenance margin; otherwise, a margin call will be issued. For day-trading margin, only half of the margin is required, provided the position is closed before the market closes.

Foreign Futures

Canadian Dollar Contract Specifications

Here is a summary for traders of the contract specifications, exchange, trading hours, minimum price fluctuation, and available trading months for Canadian DollarFutures, Micro Canadian DollarFutures, CAD/JPY DailyFutures.

Canadian DollarLast Trading Day

Futures