Trade Basics in USDINR Currency Futures/Options

[mevaibhav]

Hi All ,

I need to know how to enter a Buy Trade into ODIN for USDINR Currency.

My Query is below.

1. For Futures, When We are buying , the lot size is 1 that means 1000 USD ,

a) Does that mean I need to have around 61000 Rs if the USD-INR is at 61 Rs ?
When I am going to purchase 1 Unit , how much is it going to cost me ??
b) How to calculate profit/Loss .. ??

2. For Options , Suppose a Call for USDINR at Strike Price 61.5000 costs 0.1825 Rs .

a) How much do I need to spend to buy 1 Lot ?
b) How to calculate profit/Loss ( I think this is same as in Equities , but still , I would appreciate an Answer)


Awaiting Reply

Thanks

 

[manishchan]

Hi All ,

I need to know how to enter a Buy Trade into ODIN for USDINR Currency.

My Query is below.

1. For Futures, When We are buying , the lot size is 1 that means 1000 USD ,

a) Does that mean I need to have around 61000 Rs if the USD-INR is at 61 Rs ?
When I am going to purchase 1 Unit , how much is it going to cost me ??
b) How to calculate profit/Loss .. ??

2. For Options , Suppose a Call for USDINR at Strike Price 61.5000 costs 0.1825 Rs .

a) How much do I need to spend to buy 1 Lot ?
b) How to calculate profit/Loss ( I think this is same as in Equities , but still , I would appreciate an Answer)


Awaiting Reply

Thanks

Your broker wud be d best person to answer all these question.. some of the things like how to place order, how much margin etc differ from one broker to another..

 

[sibu3168]

Hi All ,

I need to know how to enter a Buy Trade into ODIN for USDINR Currency.

My Query is below.

1. For Futures, When We are buying , the lot size is 1 that means 1000 USD ,

a) Does that mean I need to have around 61000 Rs if the USD-INR is at 61 Rs ?
When I am going to purchase 1 Unit , how much is it going to cost me ??
b) How to calculate profit/Loss .. ??

2. For Options , Suppose a Call for USDINR at Strike Price 61.5000 costs 0.1825 Rs .

a) How much do I need to spend to buy 1 Lot ?
b) How to calculate profit/Loss ( I think this is same as in Equities , but still , I would appreciate an Answer)


Awaiting Reply

Thanks

1 Lot of USDINR means 1000USD which costs around 62000.

The tick size is 0.0025 (1/4th of 1 paisa).

The value of one tick per 1 lot is Rs. 2.50.
So if USDINR moves in your favour by 5 paisa, for 1 lot, the profit will be 50/- minus charges.

As per exchange span margin, to carry forward 1 lot, one needs 1416/- as margin money. For intraday it will be 708/- (1416/2).

Currency is the only segment where you will get high leverage.

For Option,

Suppose a Call for USDINR at Strike Price 61.5000 costs 0.1825 Rs .
For 1 lot, it will cost you 182.50 (0.1825 X 1 X 1000).

If you sell that option at 19, then your profit will be 7.50 ((0.19-0.18/25) X 1 X 1000).

Regulatory charges in Currency future segment,

No STT,

Transaction (or Turnover) Charges 125/- per crore (Discount brokerage houses charge around 160/--170/- per crore).

Service tax - 12.36% of Transaction charges + Brokerage

Stamp Duty (It will vary from max cap for a day to 600/- per crore).

SEBI charge - 20/- per crore

Educational & Higher Educational Cess - around 0.60/- per crore.

If you add all these charges, it will cost you between 161/- - 210/- depending upon brokerage houses. (Brokerage & Stamp duty extra).

So effective cost for 1 lot will be below 1 tick.

For Currency Option segment,

No STT,

Transaction (or Turnover) Charges will be between 5000/- to 6500/- per crore on option premium.

Apart from that all other charges are same.

Hope it will clarify your doubt.

 

[mevaibhav]

Thanks sibu3168

That Clarifies...

Could you also help with the Same Query in Gold Petal ?

Thanks

 

[sibu3168]

Thanks sibu3168

That Clarifies...

Could you also help with the Same Query in Gold Petal ?

Thanks

Actually, I donot trade in Goldpetals. May be in future.

 

[cloudTrader]

Thanks sibu3168

That Clarifies...

Could you also help with the Same Query in Gold Petal ?

Thanks

I will be short in my answer as I do not trade in Gold Petal but will try to make things clear.

1 Lot of Gold Petal represents value of Gold in 1 gram.

So if Goldpetal is quoting at 2625 it means that cost of 1 gram gold is 2625 for the Future Contract of the particular contract month.

I exactly don't know but the amount required for margin for Gold petal is very low , in few hundreds or even less.

A 1 point move in the quote of Goldpetal will mean a Re. 1 move. So if it goes to 2650 then it means a profit of Rs. 25.

Very less risky contract to start with.