WITH CURRENCY TRADING

Trading

with

USD EURO GBP YEN

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 TradingExchanges 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 11% there after = 540/-

Cost Involved In currency Futures Trading?

•Margin•Brokerage•Exchange Transaction Charge•Stamp Duty•STT•Service Tax•Education Tax on Brokerage

Contact SpecificationsSymbol 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 SpecificationsSymbol 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 SpecificationsSymbol 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 SpecificationsSymbol 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

ExampleA 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 FuturesCheck 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 Crores

9May2012 2970567 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 ExampleWith 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

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