Currency future trading in india
Presently, all futures contracts on MSEI are cash settled. There are no physical contracts. All trade on MSEI takes place on its nationwide electronic trading platform that can be accessed from dedicated terminals at locations of the members of the exchange.
All participants on the MSEI trading platform have to participate only through trading members of the Exchange. Those who entered either by buying long or selling short a futures contract can close their contract obligations by squaring-off their positions at any time during the life of that contract by taking opposite position in the same contract. All contracts that remain open at expiry are settled in Indian rupees in cash at the reference rate specified by RBI.
Market Activity Report csv. Contract trading cycle 12 month trading cycle. Last trading day Two working days prior to the last business day of the expiry month at 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.
Base price Theoretical price on the 1st day of the contract. On all other days, DSP of the contract. Here, we give two examples to illustrate the concept and mechanism of hedging: The hedging strategy for the importer, thus, would be: Current Spot Rate 15th July ' Hedging against Indian Rupee appreciation Suppose an Indian IT exporter receives an export order worth, say, , from a European Telecom major with the delivery date being in 3 months time.
Hedging against Indian Rupee depreciation An organic chemicals dealer in India placed an import order worth, say, , with a German manufacturer. MSEI stands in as the counterparty for each transaction; so participants need not worry about default. In the event of a default, MSEI will step in and fulfil the obligations of the defaulting party, and then proceed to recover dues and penalties from them. Participants will be relieved of their contract obligations to the extent they square off their positions.
New York Institute o.. Market Watch Desktop Gadget. Monday to Friday 9: Two working days prior to the last business day of the expiry month at Last working day excluding Saturdays of the expiry month. Theoretical price on the 1st day of the contract. DSP shall be 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.
Purchases in spot market Sell USD 50, in spot market Currency futures can also be used to speculate and, by incurring a risk, attempt to profit from rising or falling exchange rates. As with any future, this is paid to him immediately. From Wikipedia, the free encyclopedia. This section needs expansion. You can help by adding to it. Energy derivative Freight derivative Inflation derivative Property derivative Weather derivative.
Foreign exchange market Futures exchange Retail foreign exchange trading. Currency Currency future Currency forward Non-deliverable forward Foreign exchange swap Currency swap Foreign exchange option.
Bureau de change Hard currency Currency pair Foreign exchange fraud Currency intervention.