Getting Started In Foreign Exchange Futures

With forex derivatives, you are not required to predict the size of the movement of your instrument of choice. All that is important is the direction of the price movement. Simplicity is the name of the game when it comes to forex derivatives.

Vanilla options Traditional currency option trades involve buying or selling a call or put option. Amazon Giveaway allows you to run promotional giveaways in order to create buzz, reward your audience, and attract new followers and customers. There is no compulsory delivery. A swap rate overnight interest or rollover fee is applied for holding a position in a currency pair to compensate each party a trader and a market maker for the lack of physical delivery of cash. Countries generally relaxed restrictions on domestic and foreign financial institutions and foreign investors.

Customers who bought this item also bought

Thanks to the unmatched liquidity and competition in the forex market, trading currencies also allows a trader to take advantage of a number of other instruments which use currencies as the underlying asset.

It is a new asset class for diversification of investments for all resident Indians. It gives hedging opportunities to: Importers and exporters, who can hedge their future payables and receivables, Borrowers, who can hedge foreign currency FCY loans for interest and principal payments, with the need for proof of documented exposure.

It gives arbitrage opportunities. It gives trading opportunities because of its volatility and multiplicity. It provides highly transparent rates to traders as it is exchange-traded. The Kotak Securities Advantage Kotak Securities is one of the initial few broking houses who offer this product to their clients.

Currency derivatives currency futures , equities and mutual funds can be traded on one trading platform. Exclusive research reports and seminars for currency derivatives trading that help you to take informed decisions.

Facility to our existing offline as well as online customers to trade in currency derivatives by filling up a simple form. There is no need to open a separate trading account to trade in currency derivatives. Your cash margin with Kotak Securities can be used for all the three segments — equity trading , mutual funds and currency derivatives.

Facility to place buy or sell orders through branches, internet and over the phone. How to open an account As beneficial is the product to all investors, the process for accessing the product is also very simple. If you are an existing customer of Kotak Securities, all you need to do is fill a simple form and then start trading. Please turn on JavaScript and try again. Botswana Pula Contract Specification.

Zambian Kwacha Rand Currency Futures. Kenyan Shilling Rand Currency Futures. Currency Derivatives Broker List The risk of currency volatility and how to protect your business against them.

Currency Derivatives Trading Fee Schedule Currency Derivatives Trading Fee Schedule. Currency Derivatives Membership list - Jan There are several differences between these two instruments, the most notable of which are these: This allows you to tailor the contracts to your needs instead of using a set contract size futures.

By using futures, you have the ability to re-evaluate your position as often as you like. With forwards, you must wait until the contract expires. Speculating Speculating is by nature profit-driven. In the forex market, futures and spot forex are not all that different.

So why exactly would you want to participate in the futures market instead of the spot market? Well, there are several arguments for and against trading in the futures market: The strategies employed for speculating are similar to those used in spot markets.

The most widely used strategies are based on common forms of technical chart analysis since these markets tend to trend well. These include Fibonacci studies, Gann studies, pivot points and other similar techniques. Alternately, some speculators use more advanced strategies, such as arbitrage. The Bottom Line As we can see, forex futures operate similarly to traditional stock and commodity futures.