Currency Derivatives are Future and Options contracts which you can buy or sell specific quantity of a particular currency pair at a future date. It is similar to the Stock Futures and Options but the underlying happens to be currency pair (i.e. USDINR, EURINR, JPYINR OR GBPINR) instead of Stocks. A call option contract of USDINR of expiry 27th Jun, 2017 for Strike Price ‘46’ will be represented by symbol ‘OPTCUR-USDINR-27JUN2017-46-CE’. It is not only a good investment option but there are multiple benefits of currency trading in India as well.
Currency Trading Pairs for India
USD-INR
(US Dollar)
EUR-INR
(European Currency)
GBP-INR
(Great Britain Pound)
JPY-INR
(Japanese Yen)
Features of Currency Trading
Currency Futures and Options
In currency trading, the underlying asset is the currency pair at currency exchange rate as compared to equity futures
Currency is traded in pairs unlike the stocks, where you can buy or sell a single stock. While trading in Currency, you have to buy one currency and sell another currency in the forex market.
