USD/INR closed at 68.8025 against its opening of 68.75.
Dollar under pressure after Fed fuels bets on large rate cut.
Sensex provisionally ends 560 points lower at 38,337, with all but four components in the red.
ECB to cut rates in September, QE 2.0 still on the cards - analyst poll.
U.S. sanctions network selling materials for Iran nuclear programme.
North Korea says nuclear talks at risk if U.S.-South Korea exercises go ahead.
South Korea's central bank surprises with rate cut as Japan row adds to risks.
U.S., Japan eye possible small trade deal by September: sources.
Japan's core inflation hits 2-year low, might push BOJ to ease again soon.
Iran ready to talk if U.S. lifts sanctions, Pompeo skeptical.
Japan trade minister blasts South Korea for 'mistaken' explanation after bilateral meeting.
Oil jumps, Brent up more than 2% after U.S. Navy downs Iranian drone.
China makes biggest U.S. sorghum purchase since April as trade talks resume.
Trump administration erects another barrier to immigrants seeking U.S. asylum.
Worried UK employees call for changes to proposed immigration reform.
China to tighten restrictions on scrap metal imports.
Gold inches down as strong U.S. retail sales lift dollar.
Asia stocks firm as Fed props up rate cut expectations.
Chance of no-deal Brexit rises as Johnson leads Hunt - poll.
A currency futures contract is a standardized form of a forward contract that
is traded on an exchange. It's an agreement to buy or sell a specified quantity
of an underlying currency on a specified date at a specified price. In India, currently
four currency pairs are traded (USD/INR, EURO/INR, GBP/INR and JPY/INR) with a lot
size of 1000 units of the base currency, except JPY where the lot size is 100,000.
Settlement for the customer is, however, done in Rupee terms and not in the foreign
It is exactly like a futures contract of Nifty or of Infosys. A futures price is
traded on the screen. That pertains to the INR/USD exchange rate at a future date.
If the spot price goes up, the futures buyer makes a profit at the expense of the
Transparent & Efficient price discovery.
Ease of trade.
No paperwork required at branch level unlike forward contracts.
Submitting proof of underlying is not a precondition.
Currency Futures can be bought and sold through the trading members of National
Stock Exchange. To open an account with us you will be required to complete the
KYC norms which include signing of member constituent agreement, constituent registration
form and a risk disclosure document.We will allot you a unique client identification
number. To begin trading, you will be required to deposit cash or collateral (Approved
Equity shares) with us as may be stipulated. Send in an order to us exactly as you
do in NSE Derivative / Future & Options to begin trading.
When one buys a Currency Futures, it is called 'long position' and when one
sells a Currency Futures it is called 'short position'. It may be noted that open
long or short positions taken in Currency Futures can be offset (squared off) by
taking the opposite position, before the contract expiry date or hold till expiry
and settle the contract at Final Settlement Rate (RBI Reference Rate).
Yes, it is possible to put a limit order and stop loss order. These orders
will remain in the order book as open orders and once they are executed, they will
Unexecuted orders can be modified or cancelled. After an order is executed
into a trade, it is not possible to change the order parameters or cancel the same.
Marking to market of outstanding positions refers to the valuation of the outstanding
long and short positions with the latest market price of the Currency Future Contract
as compared to the value at which the open position has been taken. At the end of
the trading session, all outstanding positions are repriced at the daily settlement
price or closing price of that session.
Margin money is collected in various forms, such as:
Open interest refers to the outstanding long or short positions. For every
long position taken, there is a short position created.
Any resident Indian entity, including importers, exporters, SMEs, banks, and
financial institutions can participate in the Futures Market. However, at present,
Foreign Institutional Investors (Flls) and Non-Resident Indians (NRIs) are not permitted.
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