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 ?

  • $\begingroup$ Can you clarify? What exposure are you targeting? $\endgroup$ – JoshK Sep 10 '19 at 21:25

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).

  • $\begingroup$ Ok thanks, so the most convenient way would be an OTC forward then ? $\endgroup$ – TmSmth Sep 11 '19 at 15:43
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    $\begingroup$ A forward is somewhat similar to a future and it is a convenient substitute if you have a specific expiration date in mind. If not, you could open a position in the spot market (calling for delivery on T+2) but postpone delivery (Tom/Next swap, also called "rollover") one day at a time until you decide to close the position by doing the opposite trade. The rollover will involve paying/earning an interest rate differential. quant.stackexchange.com/questions/42114/… $\endgroup$ – Alex C Sep 11 '19 at 16:39

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