Opening a forex trading account in india
Thus you avoid the exchange rate risk that you would have otherwise faced. Placing the Trade On the lines similar to equities, depending upon the perception of increase or decrease in value, the customer has to crystallize his views on the expected opening a forex trading account in india in the value of respective currencies. The spread positions require lower margins specified by the Exchange, and the benefit of the lower margins, if any, would be passed on to the client.
Risk disclosure document explains the various kinds of risks associated with the exchange traded currency futures. This product offers the platform for hedging against the effects of unfavorable fluctuations in foreign exchange rates. The Investor Rights and Obligations document specifies the right and duties of opening a forex trading account in india client who wishes to open a currency futures trading account. To trade in currency futures, the client needs to give the required margins upfront to the Bank.
How is the margin calculation done in case of calendar spread? Lien marking is a unique facility offered by SBI for its clients. The customer can take positions in these currencies from anywhere across the country, after transferring the required margins, through his online trading account. The customer can square off his positions at any time opening a forex trading account in india the period of the contract. Then you can sell a two months currency futures contract at the current price of Rs.
How is margin calculated on open position? Account Opening Form captures the details for the trading account and of the bank account to which the trading account is to be linked to. The updated lien amount can be seen on the onlinesbi homepage. Annual maintenance charges are waived for the first year.
In addition, contract notes opening a forex trading account in india daily statements will be sent to you according to the regulatory guidelines. The unmark requests placed before 5 PMwould be unmarked during the same day, after the market hours. Tariff sheet specifies the various brokerage slabs in which the client can be classified into based on his monthly volumes. What is Currency Futures? Upon execution of the deal on the exchange, the lien amount is reduced and debited to the client's account at the End of the day.
In addition, contract notes and daily statements will be sent to you according to the regulatory guidelines. Your position would be closed at the final settlement price as per the current regulations. So at the end of two months you get Rs.
What are my settlement obligations in currency futures? Therefore the client is expected not opening a forex trading account in india use the amount, for which the unmark request was made, till the lien is released. In case the client uses this amount on the next trading day, the unmark request would be rejected. Benifits of Trading in Currency Futures A wide range of financial market participants - hedgers i. You can have following two Settlement obligations in Currency futures market:
A currency futures contract is a standardized form of a opening a forex trading account in india contract that is traded on an exchange. In the case where the margins are transferred upfront, the client is deprived of the opportunity to earn interest. Placing the Trade On the lines similar to equities, depending upon the perception of increase or decrease in value, the customer has to crystallize his views on the expected movement in the value of respective currencies. It's always advisable for the clients to keep lien marked for higher amount to make room for additional cushion over and above the required margin and thereby reduce the possibility of square off, on account of extreme market movements.