| |World's Biggest market in Financial Sector |
The foreign exchange (currency or FOREX or FX) market refers to the market for currencies and is dependent on the latest currency rates. Transactions in this market typically involve exchange of currency rates wherein one party purchases a quantity of one currency in exchange for paying a quantity of another in accordance with the current currency rates. The FX market is the largest and most liquid financial market in the world, and includes trading between large banks, central banks, currency speculators, corporates, governments, and other institutions. This market is best suited for bank, companies, importers, exporters, currency hedgers and retail traders. Live currency rates are reflected online on various portals as there is a high scope of fluctuation in today’s currency rates. |
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| | Market Size |
The world’s currency trading (FOREX) market is the biggest and the fastest growing market globally. Its daily turnover is more than 2.5 - 3 trillion dollars, which is far greater than the NASDAQ daily turnover. As such, it has been referred to as the market closest to the ideal perfect competition, notwithstanding market manipulation by central banks.
Just like how markets are places to trade goods, the same goes with FOREX Markets and currency rates. The FOREX goods are the currencies of various countries which are traded with current currency rates. You buy Euro by paying US dollars, or you buy Dollar by paying INR or you sell Japanese Yens for Canadian dollars. That's it! Largest globally traded currencies are US $ (86%), Euro (37%), Japanese Yen (16.5%), Pound Sterling (15%), Swiss Franc (6.8%), Australian $ (6.7%), (April 2007 % Daily Share). The latest currency rates are always taken into consideration.
The currency derivative market in India offers futures and options contract to trade. Currency derivatives’ trading is regulated jointly by SEBI & RBI and is operational on MCX-SX/NSE/BSE & USE. At present the average daily turnover across major exchanges is above Rs. 35,000 crores (Approx. $7000 million). |
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| | Sushil Finance provides you an opportunity to trade Currency Derivatives on the NSE, BSE as well as MCX –SX. . . . |
| Basic Product Design |
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| Product |
USD-INR |
Euro-INR |
Pound-INR |
Japanese Yen-INR |
| Lot Size |
1000 Dollars |
1000 Euro |
1000 Pound |
100,000 Yen |
| Quotation |
Rs./ Dollar |
Rs./ Euro |
Rs./ Pound |
Rs./ 100 yen |
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| Trading Hours : Monday to Friday (9:00 am - 5:00 am) |
| Initial Margin : 4% - 6% (May vary as per exchange guidelines) |
| Final Settlement Price : RBI reference rate on last trading day @ 12 noon |
| Settlement Mode : Daily Mark to Market (MTM) on T+1 basis & No delivery - Position cash settled in INR |
| Tick Size : INR 0.0025 |
| Contract Cycle : 12 monthly contract trading cycle |
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| |Hedging your Currency risk through the Currency Derivatives platform |
| Currency hedging refers to an investment position which is created with the intention to offset or cover the potential losses/risk which may arise due to uncertain and unexpected fluctuation in the prices of the underlying, in this case the Currency. This could also refer to creating an opposite position in the futures markets compared to the positions currently held in the spot market. |
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| For Example: an Exporter / importer would always be interested in protecting his business margins against the forex fluctuations which may occur in the future at the time of his remittance. Hence depending on the month of the receivable / payable, the exporter would always sell the currency of that future month and lock his price for realization of the currency which would be received on completion of the export order and an importer would always buy the currency of that future month and lock in his price for buying currency for which he would make the payment against his import orders. |
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| | Benefits Of Hedging Currency Risk Through A Futures Platform |
| Payoff is simple |
| 3 in 1 single order screen for buying and selling in BSE/NSE cash and derivatives |
| No counter-party default risk |
| No Import - Export Documents required |
| Trading is allowed without having an underlying. |
| Efficient price discovery due to high liquidity in todays currency rates |
| Live currency rates offer price transparency - real time dissemination of prices |
| Access through internet from remote locations - Live, instant, easy and efficient execution |
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| | THE SUSHIL ADVANTAGE |
| Vigilant Tracking of the international and domestic markets and up-to-date market commentary. Currency rates can change and it is important to be updated about the latest currency rates which is done through judging the live currency rates and reports on a daily basis. |
| Bouquet of Research Products: Highly skilled Fundamental and Technical reports and analysis, Intraday SMS calls and timely market alerts. Wide range of research products to choose from depending on the type of trader you are. Our Currency Daily report has details on current currency rates. |
| Execution: Convenient, secure and efficient trading in a personalized environment. It is our endeavor to provide a complete range of currency instruments which are traded, to our esteemed clients to suit their preferences and needs of having a well-structured risk management programme as today currency rates need constant monitoring. |
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