Euro FX Futures Quotation and Margin Currency for Euro Holders

Summary

The question considers whether a euro holder who wants exposure to EUR/USD could instead trade a futures contract quoted in the reciprocal direction and post margin in euros, avoiding currency conversion. The answer identifies the CME Euro FX futures contract as an example of an exchange-listed contract quoted in EUR/USD, with a specified euro delivery size and margin required in US dollars.

The response says the author knows of no exchange offering the proposed USDEUR contract with euro-denominated margin, while acknowledging that such a product could be more convenient for some traders and might be offered by a European exchange. This is a limited, time-sensitive observation about known contract specifications, not a general comparison of fees or a definitive survey of all exchanges. Margin currency and quotation conventions should be checked against current exchange rules.

Key ideas

• The CME Euro FX futures contract is quoted in EUR/USD and requires margin in US dollars, according to the response.
• A futures contract quoted in the reciprocal currency direction with euro margin could suit some euro holders.
• The response reports no known exchange offering the proposed contract and does not establish that none exists.

Tags

# USDEUR instead of EURUSD futures for euros owner


# USDEUR instead of EURUSD futures for euros owner












If you own euros and you want to be long on EURUSD, wouldn't it be more logical and with less fees to open a position on USDEUR and do a margin deposit directly in euros instead of convert the euros in dollars, then do the opposite way after closing the position ?

## Answer by Alex C (score 1, accepted)

https://quant.stackexchange.com/a/48598

Your question is about futures, which trade on a Futures Exchange.

The only future contract that I know that meets your requirement is the "Euro FX" contract that trades on the CME (Chicago Mercantile Exchange) under the ticker 6E. It is quoted in EURUSD, one contract calls for the delivery of EUR 125,000 and requires a margin deposit in USD.

Certainly for some people it might be more convenient to trade a future quoted in USDEUR and with a margin in EUR, but as far as I know no exchange offers one. Probably it would be difficult for regulatory reasons for a US based Exchange to offer such a product (in US, margins are always in USD AFAIK). But a European futures exchange could certainly offer one. Perhaps you could write to the marketing department of Eurex and suggest that they introduce such a product. (Or perhaps such a contract already exists and I haven't heard about it).

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