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Economy

EURO-INR, JPY-INR, Pound-INR contracts in India

SEBI has allowed trading of additional currency contracts apart from the currently traded USD-INR contracts.

We’ll soon be able to trade the Euro, the Japanese Yen and the UK Pound (see Zip file) with the Indian Rupee. The contract specs are – 1000 of the foreign currency (100,000 in case of the JPY) on each contract. Trading between 9 AM and 5 PM, settlement on the last working day of the month. There are specific margin calculations per contract for spread, initial and extreme loss margins, and there are position limits (individual level of 6% of total OI per client).

Apart from this, SEBI has curtailed margins for calendar spreads (buying one tenure future and shorting another) for all contracts including the current USD-INR contract.

This is useful and interesting, except for one small, slight problem: I don’t know of many brokers who provide currency trading for online traders! Do you? This is when one would love a NEAT terminal, but no one gets it apart from the broker/members.