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Introduction Of Currency Options At MCX-SX:


Currency Options at mcx-sx:

MCX-SX, which is in operation of Currency Derivatives Segment launched much awaited Currency Options for Dollar-Rupee pair  today.

Exchange have recently get nod from SEBI and RBI for introduction of currency options.Exchange conducted mock trading in last week.

Currency future contracts in USD-INR,EUR-INR,JPY-INR and GBP-INR are already being traded at MCX-SX plateform.

Currency Options are the contracts that grant the buyer of the option the right ,but not the obligation to buy or sell the underlying currency at the specified exchange rate during a specific period.For this right,the buyer pays premium to the seller of the option.

Important Specifications of Currency Options:

Symbol USDINR
Unit of Trading 1.[1 unit denotes 1000 USDs.]
Underlying asset USD-INR Spot Rate
Tick Size 0.10 Paisa / INR 0.0010.
Expiry / Last trading day Two working days prior to the last day of expiry month at 12:15 pm.
Mode of settlement Cash – Indian Rupees

Following are the screenshots for first day trading for strike price of 55.50.

 

Introduction of currency options will ensure better price discovery, Cost effective risk management and increased hedge effectiveness.

Also Read: How Option Prices Are Calculated:

 


Category: currency

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