What is Currency Derivatives?
Currency derivatives are a contract between the seller and buyer. The term 'Derivatives' indicates that it derives its value from some underlying i.e. it has no independent value. Currency Derivatives can be Future and Options contracts which are 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.
Can I purchase physical forex currency through Currency Derivatives Trading?
No. Currency Derivatives trading is an unique product (currency contract), which helps in hedging the portfolio against the future risk. At the same time, derivatives are used constructively for arbitrage and speculation too. So, you can only trade in Currency Derivatives without actual physical delivery of forex currency.
How can I open Currency Derivatives Account with Axis Securities?
Axis Securities customer can avail Currency Derivatives trading facility through a simple one-time online registration process by clicking here and within 2 working days you will be provided rights to trade in Currency Derivatives segment. In case, you are not an existing Axis Securities customer, then you can register your request by clicking here. Once the Currency Derivatives rights are enabled, you can use the same login credentials of Axis Securities and access Currency trading with streaming market watch and real-time market information.
Can I open only Currency Derivatives Account?
To open a Currency Derivatives Account, you need to open a 3-in-1 AxisDirect account first. In case you don’t have an account, you can register your request by clicking here Once 3-in-1 AxisDirect Account is opened, you can place online request through a one-time online registration process and within 2 working days your Currency derivatives rights will be enabled.
Do I have to open separate Demat & Bank Account?
No. Existing Demat & Bank Account will be linked to your Currency Derivatives Account.
Can NRIs open Currency Derivatives Account with Axis Securities?
No. NRIs are not allowed to open Currency Derivatives Account with Axis Securities.
Can I place trade in all Currency exchanges?
Currently, Currency Derivatives Trading is enabled only in ‘National Stock Exchange of India Ltd. (NSE)’.
What are market timing for Currency Derivatives Trading
9 am to 5 pm – Normal trading
9 am to 7:30 pm - Cross currency
As of now, we do not offer trading services for Cross Currency Derivatives
Which Currencies I can trade in?
As of now, trading is offered in four currency pairs viz. US Dollars (USD), Euro (EUR), Great Britain Pound (GBP) and Japanese Yen (JPY) paired with INR. To know more, visit: https://www.nseindia.com/products/content/derivatives/currency/cd.htm
Which Products are available for Currency Derivative Trading through Axis Securities? Following are the products currently offered by Axis Securities for Currency Derivative Trading
For Futures: Margin (Carry Forward)
Intraday (Option provided to Convert To Margin)
For Options: Margin (Carry Forward)
Intraday (Only for 'Buy' orders. Option provided to Convert to Margin)
Can I place orders through the Call Centre?
Yes. You can place Currency Derivatives orders through our Call Centre by using the Trade on Pone facility.
Can I place overnight orders (after market hours) in Currency Derivatives segment?
No, you can place orders only during market hours i.e 9 am to 5 pm – Normal trading 9 am to 7:30 pm - Cross currency
When do the Currency Futures contracts expire?
Currency Futures contracts expire two working days prior to the last business day (i.e. Last trading day at exchange) of the expiry month.
How much margin would be blocked on placing the Currency Futures order? How is margin blocked?
Initially, margin is blocked at the applicable margin percentage on the order value. For market orders, margin is blocked considering the order price as the last traded price of the contract. On execution of the order, the margin amount is suitably adjusted as per the actual execution price of the market order. The margin is blocked from the available limits under the Currency Limit page.
What is a Lot size?
When you trade in the currency derivatives market, you have a standardized contract in terms of common quantity and one can only trade in multiples of this quantity. This is called Lot size.
Following are the Lot size of each currency pair (per 1 lot):
USDINR- 1000 quantity in 1 lot
GBPINR- 1000 quantity in 1 lot
EURINR- 1000 quantity in 1 lot
JPYINR- 100000 quantity in 1 lot
What are account opening charges / brokerage charges for Currency Derivatives Trading?
For an existing Axis Securities customer, there are no additional Account Opening charges for Currency Derivatives Trading. For brokerage & charges click here (Charges Link)
What will happen, if I do not square up the 'Intraday' position by 4.30 pm?
The 'Intraday' open positions will be squared off by Axis Securities risk team between 4.30 pm and 5.00 pm. If you do not close the open Intraday position for any reason, Axis Securities will square it off. The time of square off is subject to change as per the discretion of Axis Securities.
How do I convert my 'Intraday' position into 'Margin'?
You can click on Orders->Trade Book-> Convert to Margin, to convert the desired buy quantity to Margin (Margin segment). You should have adequate limits to convert buy positions to delivery.
Can I use my Demat shares as Collateral for trading in Currency Derivatives through Axis Securities?
Yes, you can place the stocks lying in your demat account as collateral to increase your trading limit.