The initial margin so computed would be subject to a minimum of 2.80% on the first day of trading and 2% thereafter. The initial margin so computed would be subject to a minimum of 1.75% on the first day of trading and 2% thereafter. The rules for Interbank Settlements, including those for ‘known holidays’ and ‘subsequently declared holiday’ would be those as laid down by FEDAI. The last working day would be taken to be the same as that for Interbank Settlements in Mumbai. The final settlement day would be the last working day of the month (excluding Saturday). JPYINR Exchange rate published by the Reserve Bank in its Press Release captioned RBI Reference Rate for US$ and Euro. GBPINR Exchange rate published by the Reserve Bank in its Press Release captioned RBI Reference Rate for US$ and Euro. The settlement price would be the Reserve Bank Reference Rate for EURINR on the date of expiry. The settlement price would be the Reserve Bank Reference Rate for USDINR on the date of expiry. The maximum maturity of the contract would be 12 months.Īll monthly maturities from 1 to 12 months would be made available. However, the outstanding positions would be in Japanese Yen terms. The contract would be quoted in rupee terms. However, the outstanding positions would be in Pound Sterling terms. However, the outstanding positions would be in Euro terms. However, the outstanding positions would be in USD terms. Exchange traded currency future allow Corporate and Households alike to hedge their currency risk, to protect or increase investment returns and to trade in USDINR, EURINR, GBPINR and JPYINR without the need to have an underlying exposure.Ĭomparative features for four-permitted currency pair is given below.
As an essential tool to manage the risks associated with changing currency valuations, Currency futures allow market participants to lock in a currency rate for a specific time period.Īt the same time, Currency futures offer a means of potential profits for those who wish to take a view on currency fluctuations, and in doing so accept the risk that businesses and financial institutions wish to offset with electronic trading and efficient risk management systems. Currency futures are standardized, exchange-traded contracts to buy or sell a currency at a specific price sometime in the future.
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