CURRENCY DERIVATIVES     
 
 
Currency Derivatives  
 
 
 

Introduction of currency derivatives on Edelweiss.in will enable clients to trade in currency futures & options on NSE Currency derivative segment (CDS).

Currently NSE offers trading in currency futures of USDINR (US dollar), GBPINR (Pound), EURINR (Euro) and JPYINR (Yen) and currency options for USDINR currency pair on Currency derivative segment (CDS) of NSE.

Currency futures/options can be used to:


  • Take a view on any of the above currency appreciating or depreciating over a specified time frame.

  • Hedge the foreign exchange exposure in transparent and low cost manner. Statistics shows a negative correlation of over 90 per cent between the INR and USD exchange rate and the Sensex. Thus equity retail customers may use it for hedging their stock market risks.

  • Strategies between currency futures of different expiry date can be made to get returns with relatively lower risk.

  • Retail customers now have one more source of diversification of an asset class.

  • Active traders can benefit from the low margin requirements and execute high leverage trades.

 
 
 
  Contract Specifications - Futures    
 
 
  USDINR EURINR GBPINR JPYINR
Instrument Type FUTCUR FUTCUR FUTCUR FUTCUR
Unit of trading 1 - 1 unit denotes 1000 USD. 1 - 1 unit denotes 1000 EURO. 1 - 1 unit denotes 1000 POUND STERLING. 1 - 1 unit denotes 100000 JAPANESE YEN.
Tick size Rs.0.25 paise or INR 0.0025
Trading hours Monday to Friday 9:00 a.m. to 5:00 p.m.
Contract trading cycle 12 month trading cycle.
Last trading day Two working days prior to the last business day of the expiry month at 12 noon.
Final settlement day Last working day (excluding Saturdays) of the expiry month. The last working day will be the same as that for Interbank Settlements in Mumbai.
Quantity Freeze 10,001 or greater
Initial margin SPAN Based Margin
Settlement Daily settlement : T + 1
Final settlement : T + 2
Mode of settlement Cash settled in Indian Rupees
Source: NSE
 
 
 
  Margin Requirement - Futures    
 
 
Symbol Span Margin Per Lot Span Margin % Exp Margin Per Lot Exposure Margin % Total Margin per Lot Total Margin %
EURINR 1505.00 2.23 203.00 0.30 1707.00 2.53
GBPINR 1533.00 1.98 386.00 0.50 1919.00 2.48
JPYINR 1704.00 2.66 448.00 0.70 2152.00 3.36
USDINR 1105.00 2.25 493.00 1.00 1598.00 3.25
  • Span margin percentage are revised daily on the basis of exchange span files.

  • Limits are fungible across NSE, BSE, F&O and currency segments.

 
 
 
  Contract Specifications - Options    
 
 
  USDINR
Unit of trading One lot denotes 1000 US Dollars
Underlying / Order Quotation The spot rate in Indian Rupees for US Dollar
Tick size Rs. 0.25 paise or INR 0.0025
Trading hours Monday to Friday 9:00 a.m. to 5:00 p.m.
Option Type European Options -Settlement on the expiration day and contract cannot be exercised before expiry
Base Price Base price on the first day shall be the theoretical price. (As per Black-Scholes model)
Strike Price / strike price interval 25 strike prices for every option type (i.e. call & put) for each expiry at a strike price interval of 0.25
Contract trading cycle Exchange offers 3 consecutive monthly contracts and 1 quarterly contract
Expiry Date Expiry at 12 noon, two working days prior to the last business day of the expiry month
Final settlement day Last working day (excluding Saturdays) of the expiry month. Final settlement: T + 2
Mode of settlement Cash settled in Indian Rupees
Source: NSE
 
 
 
  How to open an Account?    
 
 

Existing clients need to sign form and POA for opening the currency account. The form and POA should be obtained from the customer service team. For new clients currency agreement and POA is part of the new form.

For new clients currency agreement and POA is part of the new form.

 
 
 
  Edelweiss CAS Research Desk    
 
 

The Client Advisory Services (CAS) Research Desk has been offering calls to investors since March 2009. Backed by research from Edelweiss Securities Limited , the CAS Research Desk focuses on maximizing returns through products to suit each investor profile.

 
 
 
CURRENCY DERIVATIVES - Performance Report Read Now !
 
 
 

Broking services offered by:

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Edelweiss Securities Limited under SEBI Registration No. INB/INF/INE231193310 (NSE), INB/INF/INE011193332 (BSE) and INE261193310 (MCX-SX); Tel.: (022) 4009 4400; Compliance Officer: Mr. Pravin Bathe Tel. (022) 40885757/40886278, Email ID - complianceofficer.esl@edelcap.com

Edelweiss Broking Limited under SEBI Registration No. INB/INF/INE231311631 (NSE) and INB/INF011311637 (BSE); Compliance Officer: Mr. T.V. Rangaswami Tel. (022) 40885757/40886278, Email ID complianceofficer.ebl@edelcap.com

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