WHEAT (CWH)
The value of one future contract of wheat is 50 x the value of the wheat-price.
The contracts is traded on the IntercontinentalExchange CME
Contract specifications
- Underlying value : 'wheat'
- Contract size : 5000 bushels
- Value of the future contract : price of 100 bushels x 50$
- Minimal price fluctuation : 0,25 (= $ 12,50 per contract)
- Contract listings : March, May, July, September and December
- Physical delivery
- Expiration date : The business day prior to the 15th calendar day of the contract month.
Trading example:
- Wheat at 473,4 $ / 100 bushels
- The value of one future contract for 'wheat' is 473,4 x 50 $ = 23.670 $.
- Buy at 473,4 and lsell at 475,4 .
- The value of one full index point is 50 $
- The price of wheat increases from 473,4 $ to 475,4 $ or 2 $
- 2 points x 50 = 100 $
When the wheat price goes up from 473,4 to 475,4 a profit of 100 $ is realised on the future contract 'wheat'.
