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Currency Derivatives Trading

Currency Derivatives Trading is emerging as an avenue for individuals and corporates in India to diversify their portfolio and manage their foreign exchange risk. Exchange Traded Currency Derivatives have registered a phenomenal growth since its inception in 2008 marking a daily turnover of almost Rs.50, 000 Cr.
Reliance Securities Ltd offers Currency Derivative Trading Services to all its clients on all major & recognized stock exchanges.
What are Currency Derivatives?

The conversion rate at which currency of one country (e.g. USD $) can be converted into another country’s currency (For Ex. Indian Rupee) is called an exchange rate (e.g. 1$=55 Indian Rupees). Any derivative (Futures or Options) where the underlying is this exchange rate is called Currency Derivatives.

In India following Currency Derivatives are available for trading

  • USDINR- Futures and Options (US Dollar, Indian Rupee)
  • EURINR- Futures (European Euro, Indian Rupee)
  • GBPINR- Futures (British Pound, Indian Rupee)
  • JPYINR- Futures (Japanese Yen, Indian Rupee)

Why should one trade in Currency Derivatives?

  • Currency derivatives market is world’s biggest market (by turnover value when compared to equity and commodities)
  • A new avenue to diversify portfolio
  • A new instrument for Hedging and Risk Management
  • Currency trading is related to global markets and macro economic conditions hence there is no threat/chance of market manipulation
  • Very high liquidity and good market depth
  • Low Margins (Approx 2.5% Vs. 10% in Nifty)
  • Low Annualized Volatility = Low Risk (when compared to other asset classes like equities and commodities)
  • Trading facility provided on reputed stock exchanges
  • Trading activities are governed by SEBI
  • Currency trading has lower cost & other charges as compared to Equities and Commodities

Introducing MIS( Margin Intraday Square Off)

 

MIS facilitates you to take leverage in intraday position in currency futures. Unlike regular market scenario it only blocks half of the actual margin required.

 

How does Margin Intraday Square-off works?

  • Buy/Sell currency future contracts on NSE-CDS during the trading hours.
  • Square off MIS open positions before 4.45 pm on the same day.
  • MIS position can be converted to Normal (NRML) before 4.45 pm, subject to availability of  the required margin. Position conversion can be done in Instaplus through net position window. For NEST trader user position conversion option available in F8 WINDOW. Click on 'detail', then on ‘position conversion’.
  • MIS product is available for first three months contract for USDINR & current month contract for EUROINR.


For any queries pertaining to Currency Trading kindly call us on 022-26854623/33201234 or write to us at [email protected]


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Spot Rate
USD54.98
EUR70.24
Margin For 1 Lot of *
EURINR1615
USDINR1747
*Indicative values.
Technical View
EURINR09:25am-16th Nov Buy @ 70.25 SL 70.05 Tgt 70.50
USDINR09:25am-16th Nov Buy @ 55.05 SL 54.90 Tgt 55.25
Daily Pivot Levels
 R1R2S1S2
USDINR 55.1155.1854.8954.82
EURINR 70.2470.3170.0269.95
GBPINR 87.3687.5086.9286.78
JPYINR 68.4668.7467.5367.25

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