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Currency Derivatives Segment
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LKP Securities Limited introduces Currency Futures Trading on the NSE and MCX-SX.
LKP undertakes Currency trading in four pairs: USD/INR, EUR/INR, GBP/INR & JPY/INR.
We are also offering Currency Options in the USD/INR pair on the NSE. Trading in
Currency Futures and Options is regulated by RBI and SEBI jointly. Any resident
Indian, individual, bank or corporation is allowed to participate. However, as of
now, FIIs and NRIs are not permitted to trade.
Exchange traded future contracts are favored over OTC markets because there is greater
Price Transparency for Buying and Selling Price as well Real-time price access made
available from any location in India on internet. As compared to OTC markets, very
low margins are required and a higher leverage provided. Exchange traded future
contracts are in standard contract values for better trading terms, and with a fixed
minimum tradable quantity of $1000, allowing investors of all sizes, small or large,
to participate. Thanks to the greater participation of all types of traders, liquidity
is much higher, at about 45,000 crore rupees per day.
Trade Confirmation will be provided through Electronic Trade Platform and E-contract
distributed by LKP. Counter Party risk and default is eliminated completely with
the presence of Clearing Corporation. Daily Mark To Market settlement offers the
benefit of greater transparency and a more efficient accounting policy. Benefit
of extended market hours, from 9am to 5pm, giving rise to increased trading opportunities.
Another benefit of Currency Derivatives over Equities or commodities is that there
no Exchange charges or STT charges as of now.
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LKP also offers Currency Options through NSE.
- Options are offered only in the Dollar-Rupee pair, with 3 continuous months’ contracts
and one quarterly contract.
- Options expire at 12 noon, 2 working days prior to the last business day of the
expiry month. New contracts are issued on expiration of an existing month’s contract.
- Options were introduced in the European Style, i.e. CE/PE, which means an option
contract cannot be exercised during the validity of the contract and is automatically
settled on the expiration day.
- The Exchange provides a minimum of 25 strike prices for every option type (CE/PE).
There are twelve contracts in-the-money (ITM), twelve contracts out-of-the-money
(OTM) and one contract at-the-money (ATM).
- Also, the strike price interval is of Rs. 0.25. The in-the-money strike price and
the out-of-the-money strike price are based on the at-the-money strike price interval.
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Support
- 24x7 Web-Enabled Back Office
- Centralized Help Desk
- Live Chat Support System
Advisory
Real-Time Market Information With News Updates
Investment Advisory Services
Dedicated Relationship Managers
- Online Trade
- Online Research
- Real-Time Currency Quotes
- Intra-Day Calls And News Flash
- Intra-Day And Historical Charts With Technical Tools
- DP Services
- Electronic Contracts
- LKP Boss - E-Broking & Back-Office Software
- Live SMS Alerts
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Products
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Symbol |
USDINR ($)
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EURINR (€)
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GBPINR (£)
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JPYINR (¥) |
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Unit of trading
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1 (1 unit denotes 1000 USD)
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1 (1 unit denotes 1000 EURO)
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1 (1 unit denotes 1000 POUND STERLING
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1 (1 unit denotes 100000 YEN) |
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Underlying |
USD
The exchange rate in Indian Rupees for a US Dollar |
EURO
The exchange rate in Indian Rupees for a EURO |
POUND STERLING
The exchange rate in Indian Rupees for a POUND STERLING |
JPY
The exchange rate in Indian Rupees for a JPY |
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Tick size |
`0.25 paise or INR 0.0025 |
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Trading hours |
Monday to Friday - 9:00 a.m. to 5:00 p.m. |
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Contract trading cycle |
12 month trading cycle |
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Last trading day |
Two working days prior to the last business day of the expiry month at 12 noon |
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Final settlement day |
Last working day (excluding Saturdays) of the expiry month.
The last working day will be the same as that for Interbank Settlements in Mumbai |
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Minimum initial margin |
5% |
5% |
5% |
5% |
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Settlement |
Daily settlement: T+ 1, Final settlement: T + 2 |
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Mode of settlement |
Cash settled in Indian Rupees |
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Daily settlement price(DSP) |
DSP shall be calculated on the basis of the last half an hour weighted average price
of such contract or such other price as may be decided by the relevant authority
from time to time |
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Final settlement price(FSP) |
Exchange rate published by the Reserve Bank in its Press Release captioned RBI Reference
Rate for US$ and Euro (RBI reference rate)
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