BM&FBOVESPA launched on August 15 eight new currency futures contracts – two mini contracts and six contracts for currencies that are new for the Exchange.
The Mini Dollar Futures Contract (WDO) is similar to the current Mini Dollar Futures Contract (WDL) with the exception of its size, which will be USD 10,000.
With this change, the new contract will represent 20% of the size of the regular Dollar Futures Contract, thus having the same proportional relationship as between the mini and regular Ibovespa futures contracts.
The Mini Euro Futures Contract (WEU) is similar to the Euro Futures Contract (EUR), including its settlement price mechanism, and differs only in size which shall be €10,000, representing 20% of the size of the regular contract.
Details about each of the contracts are available below. Simply click on the name of each of the contracts.
| Contract | Ticker Symbol |
|---|---|
| Mini currency futures contracts | |
| Mini Dollar Futures Contract | WDO |
| Mini Euro Futures Contract | WEU |
| New currency futures contracts | |
| Brazilian Real per New Zealand Dollar | NZD |
| Brazilian Real per Swiss Franc | CHF |
| Brazilian Real per Yuan | CNY |
| Brazilian Real per Turkish Lira | TRY |
| Brazilian Real per Chilean Peso | CLP |
| Brazilian Real per South African Rand | ZAR |
What are derivatives?
Derivatives are financial instruments that have this name because they derive from another asset. For example, a stock traded on the exchange is an asset, while the right to buy and sell this assert at a future date at a predetermined price is a derivative.
Companies enjoy the help of brokerage house experts in creating this type of strategy. Individual investors also have access to some BM&FBOVESPA derivatives via mini contracts, which have smaller lots and values.
