Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,884.50-10.95
Stock Analysis, IPO, Mutual Funds, Bonds & More

Basics of dollar -rupee futures

So the March expiry is on March 27.

, ET Bureau|
Updated: Mar 25, 2019, 09.37 AM IST
0Comments
Getty Images
rupee.gettyimages
In the aforesaid cases, the size of one lot is Rs 69,000.
What are dollar-rupee futures?

A dollar-rupee futures contract allows you to buy or sell the dollar (against the rupee) at a predetermined price for delivery on a future date.

Where can I trade in dollar-rupee futures?

You can on exchanges like NSE, BSE and MSE through brokers with whom you open a trading account. The settlement is in rupees and the expiry of contracts happens two working days prior to the last business day of a month. So the March expiry is on March 27.

How does it work?

Assume you’re bullish the dollar (bearish rupee), you buy the March expiry contract at 69. The size of the contract is 1,000 USD. Assume by March 27, dollar trades at 69.5, you make a gain of 0.5x1,000 or Rs 500. If, however, the dollar slips to 68.5, you lose Rs 500. Now, assume you’re bearish the dollar, you sell the dollar rupee futures contract at 69. If it expires at 69.50 you lose Rs 500, but if it falls to 68.50, you gain Rs 500. You put up a margin to trade, which is 3-5 per cent of the contract value. In the aforesaid cases, the size of one lot is Rs 69,000.

What is the maximum exposure a client can take?

$ 10 million or 6 per cent of the total open interest, whichever is higher.

At what rate does the settlement happen?

At the RBI reference rate.

What are the trade timings?

Monday through Friday, between 9 am and 5 pm.

Where are the most liquid contracts traded?

On NSE and BSE.

Also Read

RBI allows rupee derivatives in IFSC

Rupee tumbles 31 paise on India's outlook downgrade

Gold prices up Rs 70 on rupee depreciation

Rupee firms up 11 paise to 70.81

Rupee firms up 11 paise against dollar

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service