Currency derivatives are future and options contracts which you can buy or sell specific quantity of a particular currency pair at a future date. it is similar to the stock futures and options but the underlying happens to be currency pair (i.e. usdinr, eurinr, jpyinr or gbpinr) instead of stocks.. Currency derivatives are a contract between the seller and buyer, whose value is to be derived from the underlying asset, the currency value. a derivative based on currency exchange rates is an agreement that two currencies may be exchanged at a future date at a stipulated rate. for the first time this segment is accessible to the retail. Currency derivatives are very efficient risk management instruments and you can derive the below benefits: i. hedging: you can protect your foreign exchange exposure in business and hedge.
Product type name used for; nrml: normal: overnight/positional or intraday trade futures using nrml with margins mentioned below. once a position taken as nrml, it can be held till the expiry provided the requesite nrml margin present in the trading account.. Derivatives on currency currency derivatives currency options symbol usdinr instrument type optcur option type premium style european call & put options. premium premium quoted in inr. unit of trading 1 contract unit denotes usd 1000. underlying / order quotation the exchange rate in indian rupees for us dollars..
