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US Dollar Index Futures Price 
    
The dollar index futures price is different than the dollar index price in the cash (physical) market. Generally, the price of a commodity for future delivery is higher than the cash price due to carrying costs. This is called contango. The opposite of contango is backwardation. Backwardation is when the price of a commodity for future delivery is lower than the cash price. Backwardation is normal in a “seller’s market.”

When you trade dollar index futures, your futures price depends on where you get into the market. After you post your initial margin, your profit or loss depends on where you enter and exit the market (minus transaction costs).

For example:

The size for one US dollar index futures contract is 1000 x  the index value. So each $.01 move equals $10. As the market moves your account value adjusts. If your account value drops below the maintenance margin a margin call is due. A margin call can be met by offsetting positions or adding money to your account.

US Dollar index futures contract trading can be both highly profitable and extremely risky because of leverage. Leverage is the ability to control a large quantity of a commodity for a very modest investment. That investment is called margin. Be certain you understand the risk of trading futures on margin before you consider opening a futures trading account.

Trading futures is like driving a car without insurance. You save the insurance premium, but if you crash you will wish that you were insured. If you have very deep pockets or deal with the physical dollar index product then futures may be for you. If you are a speculator with a limited amount of risk capital then dollar index options are a better way for you to invest in the dollar index market.

Click here to view the current futures price of the dollar index.

Click here to contact a commodities broker with experience in the USD Index market.