Beneficial to:
▪ Importers
▪ Exporters
▪ Foreign currency Authorized dealers
▪ Corporate with exposure to foreign currency
▪ Resident Indians
Planning a Vacation to USA
Strategy: You are going to buy US$ for your trip from a forex
trader – You can BUY X contracts of USD of the travelling month
Sending your Child to US for further studies
Strategy: You are going to buy US$ for trip from forex
trader – You can BUY X contracts of USD of the travelling month
Expecting remittance in USD against potential orders
Strategy: You are going to receive Dollars and if you are unsure of
the future movement or don’t want to miss the rates since you
don’t have any export orders on hand - you still can sell Futures
of the month of shipment / expected payment receipt month.
Why to participate in the FX market ?
Directional Views
▪ Positioning for INR appreciation or depreciation Hedging existing exposure
▪ Importers & Exporters hedging future payables or receivables
▪ Borrowers hedging FCY loans – Interest or Principal payments
▪ NRIs looking to hedge their investment in India
▪ Resident Indians looking to hedge investments offshore
▪ FIIs hedging their investments in India - Trade and Capital Flows
▪ Remittances for trade or services and capital transactions Arbitrage
▪ Entities who can access onshore and non deliverable forward markets
Speculators: View based positions
▪ Expecting the Rupee to strengthen - Short Futures Contract
▪ Expecting the Rupee to Weaken - Buy Futures Contract
▪ Bullish on IT Sector / Buy IT Stocks - Short Futures Contract
▪ Bearish on IT Sector / Short on IT Stocks - Buy Futures Contract
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