|
|
|
|
 |
Why Currency Futures? |
|
|
|
|
Contract Specification
|
|
|
|
|
Futures Vs. Forwards |
|
|
|
|
|
|
|
|
 |
Foreign Exchange which has been an asset class available only to banks and corporate
with currency exposure, has finally been made easily accessible to all resident
Indians. In the context of growing integration of the Indian economy with the rest
of the world and a continuous move towards capital account liberalization, Securities
Exchange Board of India (SEBI) has permitted trading in Currency Futures based on
the USDINR exchange rate.
Currency futures are suitable for
Hedgers
Speculators
Merchants working with precious metal
Importers/Exporters
Individuals with foreign currency exposure
|
- Easy access through popular exchanges NSE, BSE, MCX
- Affordability Margins are very low and contract size is very small
- Transparency coupled with anonymity
- Better price discovery due to order matching trading format
- Reduction in counter party risk due to centralized clearing
- Excellent regulatory framework
- Product standardization simple and easy to understand / use
- Lower transaction costs
- Average daily traded volume in the global For Ex segment is $4 trillion, of which,
Exchange Traded Futures account for about 7% to 8%
|
- Lot Size - 1000 USD
- Maturity Period - 12 monthly contracts
- Exchange Timing - 9.00 am to 5.00 pm
- Quote price Base currency is USD and variable currency is INR. Price of one USD
would be quoted in INR in the steps of 0.25 paisa or 0.0025 INR. For example 1 USD
= 48.0725
- Initial Margin As decided by the exchange from time to time based on the VAR margining
system
- Position Limits At Client Level Gross open positions of the client across all the
contracts shall not exceed 6% of the total open interest or $105 million whichever
is higher
- Final Settlement Final settlement would be in INR based on RBI reference rate.
|
|
The contract would expire on the last working day (excluding Saturdays) of the month.
Contract fixing two days prior to Contract Expiration date, settlement on contract
expiry date
|
|
Period |
Scheme A (Quarterly) |
Scheme B (Compounded) |
|
Choice Of Currency Pair |
Limited to permitted currency |
Very large |
|
Regulatory framework |
Excellent |
Average |
|
Transaction cost |
Low |
Varies by bank |
|
Counterparty risk |
Nil |
It does exist |
|
Underlying exposure |
None (Cash Settled) |
Exposure is there |
|
Mark to Market margin |
Up to 5% |
Decided by bank |
|
MTM margin collaterals |
Cash, FD, Stocks |
Decided by bank |
|
Minimum contract size |
Small |
Large |
|
Time line for booking contract |
With a mouse click web based solution provided by SIHL |
Can take up to half hour by bank |
|
Risk To loss of capital |
Average |
More than average |
|
Transparency |
Transparency |
Very low |
|
Rollover position |
Online, very fast |
By Bank, can take up to half day |
|
Cancel position |
Online, very fast |
By Bank |
|
Utilization |
Doesn't exist use cancel or rollover |
By Bank, terms vary by bank |
|
|
A service where you can simply call us & trade or visit us & trade. A secured
Unique ID guarantees a full proof system that eliminates discrepancies
|
- Just call or visit and trade
- Personalized approach towards your questions
|
|
This product allows viewing streaming currency exchange rates using internet and
at the same time book deals over it. This platform has following advantages
|
- Real time platform of For Ex rates
- Transaction through a secure network
- Single screen trading terminal
- Instant order execution & conformation
- Online Accounts information
|
|
Once booking a contract, you can finish your payment procedure with any bank
|
|
To open an account we require following documents for opening a Trading Account.
Please submit a photocopy of the documents and bring original documents for verification.
|
- Photo Proof (Any one of the following)
- Passport
- Voter Id
- Driving License
- Pan Card
- Address Proof (Any one of the following)
- Passport
- Voter Id
- Driving License
- Telephone Bill (Not more than 2 months Old)
- Electricity Bill (Not more than 2 Months Old)
- Bank Passbook
- Bank Statement (Not more than 2 months Old)
- Ration Card
- A copy of Cancelled Cheque
- Pan Card
- Signed Photograph of Holder
- Copy of notarized Power of Attorney, photograph of POA, Address proof of POA, PAN
card of POA and rubber stamp, if like to have POA for Account
|
|
|
|
|
|
|