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WITH CURRENCY TRADING
Trading


USD   EURO          GBP   YEN

             with
What is currency Futures ?

A transferable futures contract that specifies
the price at which a specified currency can be
bought or sold at a future date. Currency
future contracts allow investors to hedge
against foreign exchange risk.
History of Currency Futures

Currency futures were first created at the Chicago Mercantile
Exchange (CME) in 1972 International Monetary Market (IMM)
launched trading in seven currency futures on May 16 , 1972 .
Currency Futures in INDIA
•   Currency futures trading was started in Mumbai August 29, 2008.

•   With over 300 trading members including 11 banks registered in this
    segment, the first day saw a very lively counter, with nearly 70,000
    contracts being traded.

•   The first trade on the NSE was by East India Securities Ltd Amongst the
    banks, HDFC Bank carried out the first trade.

•   The largest trade was by Standard Chartered Bank constituting 15,000
    contracts. Banks contributed 40 percent of the total gross volume.
Fundamentals of Indian Currency Futures
•Currency futures can be traded between Indian rupees and US dollar

•The trading of Indian currency futures can be done between 9 am to 5 pm

•The minimum size of currency futures is US$ 1000 periodically the value of the
contract can be changed by RBI and SEBI

•The currency future can have maximum validity of 12 months The currency
futures contract can be settled in cash
Exchanges for Currency Trading
Exchanges engaged in currency futures in India
NSE-Started in Aug, 2008
MCX-SX- Started in October, 2008
BSE-Started in October, 2008
USE-Started in 31st Aut,2010
Importance of Currency Futures?
According to market analysts, introduction of currency futures in the Indian
market will give companies greater flexibility in hedging their underlying
currency exposure and will bring in more liquidity into the market as currency
future or forex derivative contract will enable a person, a bank or an
institution to buy or sell a particular currency against the other on a specified
future date, and at a price specified in the contract.
Features?
•Only USDINR ,EURINR ,GBPINR and JPYINR contracts are
allowed to be traded in NSE , BSE, MCX-SX AND USE
Exchanges

•Standardized contract size - $1000

•The contracts quoted and settled in Indian rupees

•The maturity of the contracts shall not exceed 12 months

•Settled on specified future date called as settlement date

•Only resident Indians are allowed to trade in currency
futures

•Future price=Spot Price+Cost of Carry
Margins
Minimum Initial Margin: 1.75% on day 1, 1% thereafter

For Example : USDINR Futures Rate Rs 53.46 X1000 = 53,460

On Rs 53.460/- Margin @ 1.75% = 940/- for Day 1
1% there after = 540/-
Cost Involved In currency Futures Trading?

           •Margin
           •Brokerage
           •Exchange Transaction Charge
           •Stamp Duty
           •STT
           •Service Tax
           •Education Tax on Brokerage
Contact Specifications
Symbol                   USDINR
Instrument Type          FUTCUR
Unit of trading          1 (1 unit denotes 1000 USD)
Underlying               USD
Quotation/Price Quote    Rs. per USD
Tick size                0.25 paise or INR 0.0025
Trading hours            Monday to Friday 9:00 a.m. to 5:00 p.m.
Contract trading cycle   12 month trading cycle.
Settlement               Daily settlement : T + 1 ,Final settlement : T + 2
Mode of settlement       Cash settled in Indian Rupees
Contact Specifications
Symbol                   EURINR
Instrument Type          FUTCUR
Unit of trading          1 (1 unit denotes 1000 EURO)
Underlying               EURO
Quotation/Price Quote    Rs. Per EURO
Tick size                0.25 paise or INR 0.0025
Trading hours            Monday to Friday 9:00 a.m. to 5:00 p.m.
Contract trading cycle   12 month trading cycle.
Settlement               Daily settlement : T + 1 ,Final settlement : T + 2
Mode of settlement       Cash settled in Indian Rupees
Contact Specifications
Symbol                   GBPINR
Instrument Type          FUTCUR
Unit of trading          1 (1 unit denotes 1000 POUND STERLING)
Underlying               POUND STERLING
Quotation/Price Quote    Rs. Per GBP
Tick size                0.25 paise or INR 0.0025
Trading hours            Monday to Friday 9:00 a.m. to 5:00 p.m.
Contract trading cycle   12 month trading cycle.
Settlement               Daily settlement : T + 1 ,Final settlement : T + 2
Mode of settlement       Cash settled in Indian Rupees
Contact Specifications
Symbol                   JPYINR
Instrument Type          FUTCUR
Unit of trading          1 (1 unit denotes 1000 YEN)
Underlying               JPY
Quotation/Price Quote    Rs. Per YEN
Tick size                0.25 paise or INR 0.0025
Trading hours            Monday to Friday 9:00 a.m. to 5:00 p.m.
Contract trading cycle   12 month trading cycle.
Settlement               Daily settlement : T + 1 ,Final settlement : T + 2
Mode of settlement       Cash settled in Indian Rupees
Example
A jeweller who is exporting gold jewellery worth USD 50,000, wants protection against
possible Indian Rupee appreciation in Dec ’08, i.e. when he receives his payment. He wants
to lock-in the exchange rate for the above transaction. His strategy would be:
One USD - INR contract size                                                              : USD 1,000

Sell 50 USD - INR Dec '08 Contracts (on 15th Jul '08)                                    : 44.6500


Buy 50 USD - INR Dec '08 Contracts in Dec '08                                            : 44.3500

Sell USD 50,000 in spot market @ 44.35 in Dec '08 (Assume that initially Indian rupee depreciated , but later appreciated to 44.35 per USD as
foreseen by the exporter by end of Dec '08)

Profit/Loss from futures (Dec '08 contract)                                              : 50 * 1000 *(44.65 – 44.35) = 0.30 *50 * 1000

                                                                                           = INR 15,000



The net receipt in INR for the hedged transaction would be: 50,000 *44.35 + 15,000 = 2,217,500 + 15,000 = 2,232,500.
Had he not participated in futures market, he would have got only INR 2,217,500. Thus, he kept his sales unexposed
to foreign exchange rate risk.
Growth In Indian Currency Futures
Check the following table to see the volumes in MCX-SX for USDINR for one week . For more details visit
www.mcx-sx.com

Trade Date                      Total Contacts                  Total Turnover in
9May2012                        2970567                         Crores
                                                                16007
8May2012                        2685667                         14307
7May2012                        2612412                         13974
4May2012                        2668299                         14408
3May2012                        2031501                         10891
2May2012                        2084589                         11092
30Apr2012                       1475925                         7812
Advantages of Currency Trading
Trading Hours             9am to 5pm only
Account Opening Charges   Nil If client opens Equity account otherwise Rs 100/-
Low Margin’s              Low as Rs 1000/- Per one LOT of USDINR
Volumes                   Very High
Risk                      Low Risk
Taxes                     Low Taxes when compare to Equity and Commodity
Trading                   Client can trade in any 4 Exchanges and contact
                          specifications are same in all Exchanges
How to Earn Money from Currency Markets
By promoting currency trading clients as a Business Associate / Franchisee
   can get excellent revenue through Brokerage sharing.

Getting Client Accounts is easy because of low investment , accounts can be
   opened with min 1000/- to 2000/- also , so it will easy to get clients first
   and later on you can train these clients to trade in other segments also
   and in turn it will lead you for better income
Business Example
 With an investment of Rs 10,000/- client can buy 10 Lots of USDINR without Exposure.
 And 30 Lots with Exposure.

Clients    Buying        Selling        Turnover per each client subject Number of Trades per day
           Each Client   Each client    One trade    2 Trades     3 Trades    4Trades
    1      5 Lots        5Lots          5Lakhs       10 Lakhs     15Lakhs     20Lakhs
    5      25 Lots       25Lots         25Lakhs      50Lakhs      75 Lakhs    1 Crore
   10      50 Lots       50 Lots        50 Lakhs     1 Crore      1.5 crore   2 Crore
   50      250 Lots      250 Lots       2.5 Crores   5.00 Crore   7.5 Crore   10 Crore
   100     500 Lots      500 Lots       5 Crores     10 Crores    15 Crores 20 Crores

As per Franchisee agreement Business associate will get revenue sharing on Turn Over
How To Get 100 Clients in Just 60 days

•Through Local News paper Classified Ads
•Through online ad posting
•Phamplet distribution directly or through Newspaper
•Bulk SMS pushing
•E-mail marketing
•Appointing Marketing person with attractive Incentive
COME BE A PART OF THE RAPIDLY THE GROWING FRANCHISEE NETWORK

We invite aspiring entrepreneurs, existing Sub-broker/franchisee having strong local
presence, credible track record of client servicing and needful infrastructure to join us as
Channel Partner / Business Associate

The company offers all Stock & Commodity Market products i.e., NSE, BSE, F&O, MCX,
NCDEX, Currency Future & Depository Services. Mutual Funds and IPO’s
Refer Associates and earn.
We enable you to offer quality investment services to customers at competitive prices. To
this effect we structure Innovative Partnership Arrangements on Mutually Acceptable
Terms and Conditions , Various Revenue Sharing Models, and Competitive Pricing.
Client Advantages:
•Trading of different exchange i.e. NSE,BSE,MCX-SX,NCDX & MCX under one roof
•Hassle free “Single Client Code” for all the exchanges
•Application based and Browser based trading
•Online Payment gateway for 14 Banks ,Instant credit and Exposure after online Transfer
•Competitive Brokerage , Latest Technology
•Web Based Financial Accounting and digital Contract Notes to Email Address
•Web Based Depository services
•Client can deposit fund in any segment and can trade all segments like Capital , F&O , Ncdex and MCX and MCX-SX

•Every day daily trading conformation goes to clients mobile and Digital contract note goes to clients mail id's
•NBFC funding facility for stock purchases.
•Each client can see the all transction through Individual Client Back office User ID & Password
•For DP also can get Individual online back office User Id& Password
•Equity Research Services and many more
Research Based Advisory for Currency , Commodity and Equity Futures through
                               expresscalls.in
You are Invited to
Contact
Revenue generation through Currency trading
Revenue generation through Currency trading

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Revenue generation through Currency trading

  • 2. Trading USD EURO GBP YEN with
  • 3. What is currency Futures ? A transferable futures contract that specifies the price at which a specified currency can be bought or sold at a future date. Currency future contracts allow investors to hedge against foreign exchange risk.
  • 4. History of Currency Futures Currency futures were first created at the Chicago Mercantile Exchange (CME) in 1972 International Monetary Market (IMM) launched trading in seven currency futures on May 16 , 1972 .
  • 5. Currency Futures in INDIA • Currency futures trading was started in Mumbai August 29, 2008. • With over 300 trading members including 11 banks registered in this segment, the first day saw a very lively counter, with nearly 70,000 contracts being traded. • The first trade on the NSE was by East India Securities Ltd Amongst the banks, HDFC Bank carried out the first trade. • The largest trade was by Standard Chartered Bank constituting 15,000 contracts. Banks contributed 40 percent of the total gross volume.
  • 6. Fundamentals of Indian Currency Futures •Currency futures can be traded between Indian rupees and US dollar •The trading of Indian currency futures can be done between 9 am to 5 pm •The minimum size of currency futures is US$ 1000 periodically the value of the contract can be changed by RBI and SEBI •The currency future can have maximum validity of 12 months The currency futures contract can be settled in cash
  • 7. Exchanges for Currency Trading Exchanges engaged in currency futures in India NSE-Started in Aug, 2008 MCX-SX- Started in October, 2008 BSE-Started in October, 2008 USE-Started in 31st Aut,2010
  • 8. Importance of Currency Futures? According to market analysts, introduction of currency futures in the Indian market will give companies greater flexibility in hedging their underlying currency exposure and will bring in more liquidity into the market as currency future or forex derivative contract will enable a person, a bank or an institution to buy or sell a particular currency against the other on a specified future date, and at a price specified in the contract.
  • 9. Features? •Only USDINR ,EURINR ,GBPINR and JPYINR contracts are allowed to be traded in NSE , BSE, MCX-SX AND USE Exchanges •Standardized contract size - $1000 •The contracts quoted and settled in Indian rupees •The maturity of the contracts shall not exceed 12 months •Settled on specified future date called as settlement date •Only resident Indians are allowed to trade in currency futures •Future price=Spot Price+Cost of Carry
  • 10. Margins Minimum Initial Margin: 1.75% on day 1, 1% thereafter For Example : USDINR Futures Rate Rs 53.46 X1000 = 53,460 On Rs 53.460/- Margin @ 1.75% = 940/- for Day 1 1% there after = 540/-
  • 11. Cost Involved In currency Futures Trading? •Margin •Brokerage •Exchange Transaction Charge •Stamp Duty •STT •Service Tax •Education Tax on Brokerage
  • 12. Contact Specifications Symbol USDINR Instrument Type FUTCUR Unit of trading 1 (1 unit denotes 1000 USD) Underlying USD Quotation/Price Quote Rs. per USD Tick size 0.25 paise or INR 0.0025 Trading hours Monday to Friday 9:00 a.m. to 5:00 p.m. Contract trading cycle 12 month trading cycle. Settlement Daily settlement : T + 1 ,Final settlement : T + 2 Mode of settlement Cash settled in Indian Rupees
  • 13. Contact Specifications Symbol EURINR Instrument Type FUTCUR Unit of trading 1 (1 unit denotes 1000 EURO) Underlying EURO Quotation/Price Quote Rs. Per EURO Tick size 0.25 paise or INR 0.0025 Trading hours Monday to Friday 9:00 a.m. to 5:00 p.m. Contract trading cycle 12 month trading cycle. Settlement Daily settlement : T + 1 ,Final settlement : T + 2 Mode of settlement Cash settled in Indian Rupees
  • 14. Contact Specifications Symbol GBPINR Instrument Type FUTCUR Unit of trading 1 (1 unit denotes 1000 POUND STERLING) Underlying POUND STERLING Quotation/Price Quote Rs. Per GBP Tick size 0.25 paise or INR 0.0025 Trading hours Monday to Friday 9:00 a.m. to 5:00 p.m. Contract trading cycle 12 month trading cycle. Settlement Daily settlement : T + 1 ,Final settlement : T + 2 Mode of settlement Cash settled in Indian Rupees
  • 15. Contact Specifications Symbol JPYINR Instrument Type FUTCUR Unit of trading 1 (1 unit denotes 1000 YEN) Underlying JPY Quotation/Price Quote Rs. Per YEN Tick size 0.25 paise or INR 0.0025 Trading hours Monday to Friday 9:00 a.m. to 5:00 p.m. Contract trading cycle 12 month trading cycle. Settlement Daily settlement : T + 1 ,Final settlement : T + 2 Mode of settlement Cash settled in Indian Rupees
  • 16. Example A jeweller who is exporting gold jewellery worth USD 50,000, wants protection against possible Indian Rupee appreciation in Dec ’08, i.e. when he receives his payment. He wants to lock-in the exchange rate for the above transaction. His strategy would be: One USD - INR contract size : USD 1,000 Sell 50 USD - INR Dec '08 Contracts (on 15th Jul '08) : 44.6500 Buy 50 USD - INR Dec '08 Contracts in Dec '08 : 44.3500 Sell USD 50,000 in spot market @ 44.35 in Dec '08 (Assume that initially Indian rupee depreciated , but later appreciated to 44.35 per USD as foreseen by the exporter by end of Dec '08) Profit/Loss from futures (Dec '08 contract) : 50 * 1000 *(44.65 – 44.35) = 0.30 *50 * 1000 = INR 15,000 The net receipt in INR for the hedged transaction would be: 50,000 *44.35 + 15,000 = 2,217,500 + 15,000 = 2,232,500. Had he not participated in futures market, he would have got only INR 2,217,500. Thus, he kept his sales unexposed to foreign exchange rate risk.
  • 17. Growth In Indian Currency Futures Check the following table to see the volumes in MCX-SX for USDINR for one week . For more details visit www.mcx-sx.com Trade Date Total Contacts Total Turnover in 9May2012 2970567 Crores 16007 8May2012 2685667 14307 7May2012 2612412 13974 4May2012 2668299 14408 3May2012 2031501 10891 2May2012 2084589 11092 30Apr2012 1475925 7812
  • 18. Advantages of Currency Trading Trading Hours 9am to 5pm only Account Opening Charges Nil If client opens Equity account otherwise Rs 100/- Low Margin’s Low as Rs 1000/- Per one LOT of USDINR Volumes Very High Risk Low Risk Taxes Low Taxes when compare to Equity and Commodity Trading Client can trade in any 4 Exchanges and contact specifications are same in all Exchanges
  • 19. How to Earn Money from Currency Markets By promoting currency trading clients as a Business Associate / Franchisee can get excellent revenue through Brokerage sharing. Getting Client Accounts is easy because of low investment , accounts can be opened with min 1000/- to 2000/- also , so it will easy to get clients first and later on you can train these clients to trade in other segments also and in turn it will lead you for better income
  • 20. Business Example With an investment of Rs 10,000/- client can buy 10 Lots of USDINR without Exposure. And 30 Lots with Exposure. Clients Buying Selling Turnover per each client subject Number of Trades per day Each Client Each client One trade 2 Trades 3 Trades 4Trades 1 5 Lots 5Lots 5Lakhs 10 Lakhs 15Lakhs 20Lakhs 5 25 Lots 25Lots 25Lakhs 50Lakhs 75 Lakhs 1 Crore 10 50 Lots 50 Lots 50 Lakhs 1 Crore 1.5 crore 2 Crore 50 250 Lots 250 Lots 2.5 Crores 5.00 Crore 7.5 Crore 10 Crore 100 500 Lots 500 Lots 5 Crores 10 Crores 15 Crores 20 Crores As per Franchisee agreement Business associate will get revenue sharing on Turn Over
  • 21. How To Get 100 Clients in Just 60 days •Through Local News paper Classified Ads •Through online ad posting •Phamplet distribution directly or through Newspaper •Bulk SMS pushing •E-mail marketing •Appointing Marketing person with attractive Incentive
  • 22. COME BE A PART OF THE RAPIDLY THE GROWING FRANCHISEE NETWORK We invite aspiring entrepreneurs, existing Sub-broker/franchisee having strong local presence, credible track record of client servicing and needful infrastructure to join us as Channel Partner / Business Associate The company offers all Stock & Commodity Market products i.e., NSE, BSE, F&O, MCX, NCDEX, Currency Future & Depository Services. Mutual Funds and IPO’s
  • 23. Refer Associates and earn. We enable you to offer quality investment services to customers at competitive prices. To this effect we structure Innovative Partnership Arrangements on Mutually Acceptable Terms and Conditions , Various Revenue Sharing Models, and Competitive Pricing.
  • 24. Client Advantages: •Trading of different exchange i.e. NSE,BSE,MCX-SX,NCDX & MCX under one roof •Hassle free “Single Client Code” for all the exchanges •Application based and Browser based trading •Online Payment gateway for 14 Banks ,Instant credit and Exposure after online Transfer •Competitive Brokerage , Latest Technology •Web Based Financial Accounting and digital Contract Notes to Email Address •Web Based Depository services •Client can deposit fund in any segment and can trade all segments like Capital , F&O , Ncdex and MCX and MCX-SX •Every day daily trading conformation goes to clients mobile and Digital contract note goes to clients mail id's •NBFC funding facility for stock purchases. •Each client can see the all transction through Individual Client Back office User ID & Password •For DP also can get Individual online back office User Id& Password •Equity Research Services and many more
  • 25. Research Based Advisory for Currency , Commodity and Equity Futures through expresscalls.in