Therefore on a contract size of 67700, this works out to – The margin required for this can be fetched from Zerodha’s margin calculator here is the snapshot of the same.Īs you can see, the margin required to initiate a fresh position in USD INR is about Rs.1,524/. The contract value of 1 lot of USD INR = Lot size * price Note that I’m not trying to justify a trade here, my objective is to showcase how the USD INR contract works. One can initiate a short trade based on this, keeping the high of the Marubuzo as the stoploss. This is the 15-minute chart of the USD INR pair, as you can see the encircled candle has formed a bearish Marubuzo. To give you a sense of how this works, let’s take an example – RBI Reference rate on the day of Final settlement Hence roughly about 2.5% is the overall margin requirement. Usually, SAPN is about 1.5%, and exposure is around 1%. Note, equity derivatives have an expiry upto 3 months.Ĭontracts trade till 12:30 PM, 2 days before the last working day.Įquity derivatives continue to trade till 3:30 PM of the expiry day. Monday to Friday between 9:00 AM to 5:00 PM Inequity derivatives, the lot is number of shares, but here it’s a dollar amount Here are the salient features of the USD INR pair – Particular The contract specification of the USD INR futures gives us insights on trade logistics. Now, assuming you understand these concepts fairly well, let us begin by slicing and dicing the USD INR futures contract. The currency and commodities market is largely a Futures market hence a working knowledge of these derivative instruments is the key. If you are not familiar with these topics, then I’d strongly suggest you read through these modules before proceeding further. Technical Analysis plays an important role in setting up short term currency trades, so we’ll assume you know Technical Analysis as well. (Only the headline and picture of this report may have been reworked by the Business Standard staff the rest of the content is auto-generated from a syndicated feed.We make an extremely critical assumption at this stage – we will assume you are familiar with how Future and Options contracts work. Meanwhile, the country's foreign exchange reserves declined by USD 3.007 billion to USD 561.046 billion in the week ended August 26, the Reserve Bank of India (RBI) data showed. On the domestic equity market front, the 30-share BSE Sensex was trading 243.2 points or 0.41 per cent higher at 60,036.34, while the broader NSE Nifty was up 76.55 points or 0.43 per cent to 17,909.90.įoreign institutional investors were net buyers in the capital market on Friday as they purchased shares worth Rs 2,132.42 crore, as per exchange data. The dollar index eased further on Monday as investors await cues from US CPI data this week. "Markets now await India's August inflation data, which is likely to trend higher to 6.90 per cent from 6.71 per cent in July, as per a poll, adding pressure on RBI to hike interest rates more aggressively in coming months," said Sriram Iyer, Senior Research Analyst at Reliance Securities. The global oil benchmark Brent crude futures fell 1.49 per cent to USD 91.46 per barrel. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.23 per cent to 108.75. On Friday, the rupee appreciated by 12 paise to close at 79.57 against the American currency. In initial deals, the local unit also touched 79.64 against the dollar. The rupee depreciated by 10 paise to 79.67 against the US dollar in opening trade on Monday, even as the equity market opened on a positive note.Īt the interbank foreign exchange market, the rupee opened at 79.66 against the greenback, then fell to 79.67, registering a decline of 10 paise over its last close.
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