Trading in Currency Derivatives


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The gross open positions of the client across all contracts shall not exceed 15% of the total open interest or GBP 50 million whichever is higher. The gross open positions of the client across all contracts shall not exceed 15% of the total open interest or EUR 50 million whichever is higher. The gross open positions of the client across all contracts shall not exceed 15% of the total open interest or USD 100 million whichever is higher. The final settlement day would be the last working day of the month .

  • The value of a country’s currency vis-à-vis other currency will depend on the factors that we have mentioned above, and these keep changing because of domestic and international factors.
  • For cash, currency, future & options, commodity derivatives segments of exchanges.
  • However, they stop responding when clients demand they return the invested amount and profit earned.
  • Seamless integration of Pre-trade, At-trade and Post–trade services under one roof.

When you buy the equities, you are actually betting on the price of the equity to go up. On the contrary when you are buying the USD-INR paid, you are actually betting on the US dollar to appreciate or in other words you are expecting the INR to depreciate against the US dollar. If you are actually expecting the INR to appreciate against the dollar then you should be selling the USD-INR futures.

US Dollar Index Futures Streaming Chart

Currency futures allow investors to buy or sell a currency at a future date, at a previously fixed price. This is to inform that, many instances were reported by general public where fraudsters are cheating general public by misusing our brand name Motilal Oswal. The fraudsters are luring the general public to transfer them money by falsely committing attractive brokerage / investment schemes of share market and/or Mutual Funds and/or personal loan facilities. Though we have filed complaint with police for the safety of your money we request you to not fall prey to such fraudsters. You can check about our products and services by visiting our website You can also write to us at , to know more about products and services.

SGX’s USD/CNH futures hit a record ADV of US$7.8 billion – FinanceFeeds

SGX’s USD/CNH futures hit a record ADV of US$7.8 billion.

Posted: Tue, 15 Nov 2022 08:00:00 GMT [source]

This form is designed to capture the personal information of the client e.g. identity, PAN number, address, bank details for registration of the client in the Currency Derivatives segment of the Exchange. The initial margin so computed would be subject to a minimum of 4.50% on the first day of trading and 2.30% thereafter. The initial margin so computed would be subject to a minimum of 3.20% on the first day of trading and 2% thereafter.


Trading on margin is only for experienced investors with high risk tolerance. For additional information about rates on margin loans, please see Margin Loan Rates. Security futures involve a high degree of risk and are not suitable for all investors. — Gold prices rose to settle just a shade below the $2,000 mark on Monday as the dollar dipped ahead of a keenly-watched Federal Reserve decision on U.S. interest rates. — Gold prices rose on Tuesday, extending a recovery into a third straight session as the dollar fell amid bets that the Federal Reserve could pause its rate hike cycle by as… — Oil prices rose slightly on Thursday, but were nursing sharp losses for the week as fears of slowing economic growth largely offset signs of tightening U.S. supplies, with… Pay 20% upfront margin of the transaction value to trade in cash market segment. The modus operandi observed is that once a client pays amount to them, huge profits are shown in his account online inducing more investment. However, they stop responding when client demands return of amount invested and profit earned.

The price of a future contract is expressed in terms of INR per unit of other currency e.g. Currency future contracts allow investors to hedge against foreign exchange risk. Currently Currency Futures are available on four currency pairs viz. US Dollars (USD-INR), Euro (EUR-INR), Great Britain Pound (GBP-INR) and Japanese Yen (JPY-INR). For currency trading, you can open a demat account along with the best online trading account with a reputable brokerage house such as IIFL.

usdinr futures

He made a lot of profit from the Oct. 19, 1987 crash, also known as Black Monharam. Understand your trading style – Every currency trader has a trading style. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge. 1) KYC is one time exercise while dealing in securities markets – once KYC is done through a SEBI registered intermediary (Broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary. Both are margin-based products – an initial margin needs to be placed by client with the Exchange through ICICI Bank. INR Vostro account As part of correspondent banking, ICICI Bank, India offers Rupee account to foreign banks.

Currency Futures in India

So for a small amount, you will be able to take significant in currency futures. Of course, the more significant the position, the higher the potential for profit, and loss. If you want to play it safe, you can always go in for currency options, which are less risky since it gives you the choice of not exercising the contract at the strike price. A long currency option position at one maturity and a short option position at a different maturity in the same series, both having the same strike price is treated as a calendar spread. The margin for options calendar spread is same as specified for USD-INR currency futures calendar spread. The calendar spread margin is calculated on the basis of delta of the portfolio in each month.

  • I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.
  • Mark-to-Market Settlement The MTM settlement shall be done at least twice in a business day, at settlement times as specified by the clearing corporation from time to time.
  • The gross open positions of the client across all contracts shall not exceed 6% of the total open interest or GBP 5 million whichever is higher.
  • In case FIMMDA price is not available, the price for settlement shall be as decided by ICCL from time to time.

If they expect the value of the base currency to depreciate against the quote currency, they will sell the currency pair. For instance, if the value of USD is expected to appreciate against INR, traders can buy USD/INR futures. Most Important Basics of Online Currency Trading in India As you are looking to trade in the currency markets in India, let me start by telling you a relatable conversation which happened a few months back that got me thinking of foreign exchange. The trader is the high risk participant and takes positions in the currency futures based on their view of currencies. Mode of settlement Cash settled in Indian Rupees Daily settlement price DSP shall be calculated on the basis of the last half an hour volume weighted average price of such contract. In the absence of last half an hour trading on the Exchange, theoretical futures price shall be considered for computation of DSP.

The currency or forex market is a decentralized worldwide market. Today, it is the world’s largest financial market and has an average daily volume of about $5 trillion. A large currency trades involve the US dollar as one of the currencies in the currency pair. Currency Futures and Currency Options refer to a standardized foreign exchange contract traded on a recognized stock exchange.

Gold below $2,000 in second straight weekly loss –The Japanese yen fell sharply on Friday after the Bank of Japan largely maintained its dovish stance, while broader Asian currencies also came under pressure from renewed…

extreme loss margin

No separate position limit is prescribed at the level of clearing member. However, the clearing member ensures that his own trading position and the positions of each trading member clearing through him is within the limits specified above. The contract cycle consists of three serial monthly contracts followed by three quarterly contracts of the cycle March/June/September/December.

Dollar weakens, euro gains ahead of central bank meetings

European shares climbed 1.5% and U.S. equity futures were up about 1%. The rupee slid beneath the essential psychological level of 82 per dollar on Tuesday due to the possible corporate outflows and importer demand for the US dollar, according to traders. Dealer demand through the session was also mentioned by them. Weaker dollar index with persisting dollar buying indicated an outflow.

Initial Margin – Minimum 2% of the Notional Value of Contract or higher as per Exchange requirement based on the volatility of the market. All monthly maturities from 1 to 12 months would be made available. Ankara, April 21 Turkey’s tourism industry is recovering from a major setback caused by the February 6 devastating earthquakes, business insiders said. China wants to weaken the US dollar’s dominance.BRICS to launch new currency to beat US dollar.

The closing price for a futures contract is calculated on the basis of the last half an hour weighted average price of such contract or such other price as may be decided by the relevant authority from time to time. The theoretical DSP for unexpired futures contracts, which are not traded during the last half an hour on a day, is the price computed as per the prescribed formula. Let’s say an information technology company wants to hedge against currency risk in case the IND strengthens against the USD.

For any complaints / Investor grievances email to Also refer our investor grievance matrix from our contact us page. A client can also opt to write to NSE or MCX or BSE or CDSL to resolve in form of grievance. Participants will be relieved of their contract obligations to the extent they square off their positions.

FX Basis Trade at Index Close (BTIC) and BTIC+ – CME Group

FX Basis Trade at Index Close (BTIC) and BTIC+.

Posted: Mon, 28 Nov 2022 21:46:04 GMT [source]

The Client through this letter consents to recording of telephone conversations and confirmation of transactions through electronic mode. Board resolution is required to be given by the company resolving the approval of the Board to undertake trading in Currency Futures and list all the persons who will act as Dealers and/or authorised signatories. By Barani Krishnan — U.S. rate hike and recession fears have cut into the OPEC+-hyped rally in crude, handing oil bulls their first week of losses after a four-week winning…

In the absence of last half an hour trading, theoretical DSP of the contract shall be used for settlement. Only a small percentage of currency futures transactions are completed by a buyer and seller physically delivering foreign money. When a currency futures contract is kept until it expires and is physically settled, both the applicable exchange and the participant are responsible for completing the delivery. Interest rate parity can also be checked using currency futures.

The exporter, by hedging by selling USDINR futures, has locked in cost at around the rate 3 months back. What if the rupee had weakened; would the exporter not have lost? That is correct, but again this is about predictable cash flows. The gross open positions of the client across all contracts not to exceed 6% of the total open interest or USD 10 million whichever is higher. The Exchange disseminates alerts whenever the gross open position of the client exceeds 3% of the total open interest at the end of the previous day’s trade.

Further USD strength requires Fed Funds futures market to start pricing in a 50 bps hike in March – SocGen – FXStreet

Further USD strength requires Fed Funds futures market to start pricing in a 50 bps hike in March – SocGen.

Posted: Mon, 20 Feb 2023 08:00:00 GMT [source]

Our Debt Syndication Desk offers end-to-end services related to the origination and placement of bonds & commercial papers across various Issuer and Investor segments. Seamless execution and market making through a range of channels for your remittance requirements. Holding and transacting with securities in dematerialized form. An innovative digital platform to execute escrow transactions online. LO/BO/PO, NRO Accounts, Foreign Currency Account, Special non rupee resident account .

price range based

Currency call options are entered by the inventors to benefit from the increase in the price of the currency pair. On the other hand, currency put options are leveraged by investors to benefit from the decrease in the price of the commodity pair. The National Stock Exchange first introduced Exchange-traded currency options in the year 2010. You can purchase currency options using INR against other currencies such as the US dollar, Euros, Pound sterling, etc., on NSE, BSE, and MCX-SX. Unlike the forward market mechanism, which is a closed market, the USD-INR pair is based on the transparent market mechanism. This makes it a lot more preferable for individual traders with limited access to information and insights.

Know your limits – Before you do any currency trade, specify the entry and exit points for the trade. No trade is a sure-shot guarantee and so be prepared to double down or exit when the situation is unfavorable. A good idea about the possible trade scenarios will help you a lot. For instance, the EUR/USD rate represents the number of US dollar one Euro can buy. If you think the Euro will increase in value against the US dollar, you buy Euros with US dollars. Supplying physical Gold/Silver to Bullion traders and jewellery manufacturers by way of Outright sale and Gold Metal Loan products.

The initial margin so computed would be subject to a minimum of 2.80% on the first day of trading and 2% thereafter. The initial margin so computed would be subject to a minimum of 1.75% on the first day of trading and 2% thereafter. The settlement price would be the Reserve Bank Reference Rate for EURINR on the date of expiry.

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