Currency Basics : What are the factors that affect the exchange rate of a currency?

Currency Basics : What are the factors that affect the exchange rate of a currency?
"A country's currency exchange rate is typically affected by the supply and demand for the country's currency in the international foreign exchange market. The demand and supply dynamics is principally influenced by factors like interest rates, inflation, trade balance and economic & political scenarios in the country. The level of confidence in the economy of a particular country also influences the currency of that country."

Currency Basics : What are the currencies traded on MCX-SX?

Currency Basics : What are the currencies traded on MCX-SX?
In the first phase of operations, only the USDINR currency pair was traded on MCX-SX. With the changing need of the participants, the regulators have allowed MCX-SX to facilitate trading in other major currency pairs as EURINR, GBPINR and JPYINR future contracts.

Currency Basics : What are the benefits of trading in Currency Derivatives

Currency Basics : What are the benefits of trading in Currency Derivatives
Currency Derivatives are very efficient risk management instruments and you can derive the below benefits:

i. Hedging: You can protect your foreign exchange exposure in business and hedge potential losses by taking appropriate positions in the same. For e.g. If you are an importer, and have USD payments to make at a future date, you can hedge your foreign exchange exposure by buying USDINR and fixing your pay out rate today. You would hedge if you were of the view that USDINR was going to depreciate. Similarly it would give hedging opportunities to Exporters to hedge thier future receivables, Borrowers to hedge foreign currency (FCY) loans for interest and principal payments, Resident Indians, who can hedge their offshore investments.

ii. Speculation: You can speculate on the short term movement of the markets by using Currency Futures. For e.g. If you expect oil prices to rise and impact India's import bill, you would buy USDINR in expectation that the INR would depreciate. Alternatively if you believed that strong exports from the IT sector, combined with strong FII flows will translate to INR appreciation you would sell USDINR.

iii. Arbitrage: You can make profits by taking advantage of the exchange rates of the currency in different markets and different exchanges.

iv. Leverage: You can trade in the currency derivatives by just paying a % value called the margin amount instead of the full traded value.

Currency Basics : What are Currency Futures Contracts?

Currency Basics : What are Currency Futures Contracts?
Currency Futures contracts are legally binding agreement to buy or sell a financial instrument sometime in future at an agreed price. Currency Future contracts are standardized in terms of lots and delivery time. The only variable is the price, which is discovered by the market. Currency Futures contracts have different expiry validity and will expire after the completion of the specified tenure.

Currency Basics : What are benefits of spread contract?

Currency Basics : What are benefits of spread contract?
Spread contract give users the benefit to enter two calendar contracts simultaneously without the risk of partial (one leg) execution and at a lower impact cost.

Currency Basics :In which currency are the currency futures contracts settled?

Currency Basics :In which currency are the currency futures contracts settled?
They are settled in cash in Indian Rupees.

Currency Basics : If I am an individual with no exposure to foreign exchange risks, does a currency futures exchange mean anything to me?

Currency Basics : If I am an individual with no exposure to foreign exchange risks, does a currency futures exchange mean anything to me?
Yes, it does, if you want to invest purely as an investor. You can benefit from exchange rate fluctuations just as you can benefit by investing in equities in the stockmarket. However, as in the stockmarkets, you also stand to lose money if the price movements are not in keeping with what you had anticipated. Participating in a currency futures exchange is risky, just as the stockmarket is. You should therefore be knowledgeable about the currency market if you want to participate as an investor.

Currency Basics : If I am an AD Category I Bank, why should I become a member of a currency futures exchange? I have the interbank market, anyway.

If I am an AD Category I Bank, why should I become a member of a currency futures exchange? I have the interbank market, anyway.
"The interbank market is a market for Banks. Small and mediumsized clients of Banks cannot directly participate in the interbank market. If a Bank is a member of a currency futures exchange, it can trade on behalf of its small and medium-sized clients, who otherwise would not have been able to benefit from fluctuations in currency exchange rates. Thus, Banks can increase their customer base if they become a member of a currency futures exchange. Banks themselves can also benefit from a currency futures exchange by arbitraging between the existing interbank market and the currency futures exchange. Larger participation in a currency futures exchange gives the exchange platform a greater vibrancy than the interbank market, which is limited to Banks."

Currency Basics : How do exchange-traded currency futures enable hedging against currency risk?

How do exchange-traded currency futures enable hedging against currency risk?
On a currency exchange platform, you can buy or sell currency futures. If you are an importer, you can buy futures to "lock in" a price for your purchase of actual foreign currency at a future 10 date. You thus avoid exchange rate risk that you would otherwise have faced. On the other hand, if you are an exporter, you sell currency futures on the exchange platform and "lock in" a sale price at a future date. However, it may be noted that the contract will be marked to market at the daily settlement price and profit or loss will be paid / collected on a daily basis.

Currency Basics : How are currency prices determined?

How are currency prices determined?
Currency prices are affected by a variety of economic and political conditions, but probably the most important are interest rates, international trade, inflation, and political stability. Sometimes governments actually participate in the foreign exchange market to influence the value of their currencies. They do this either by flooding the market with their domestic currency in an attempt to lower the price or, conversely, buying in order to raise the price. This is known as central bank intervention. Any of these factors, as well as large market orders, can cause high volatility in currency prices. However, the size and volume of the FOREX market make it impossible for any one entity to drive the market for any length of time.

Currency Basics : How and why does the demand and supply of a currency increase and decrease?

How and why does the demand and supply of a currency increase and decrease?
There are several reasons. A rise in export earnings of a country increases foreign exchange supply. A rise in imports increases demand. These are the objective reasons, but there are many subjective reasons too. Some of the subjective reasons are: directional viewpoints of market participants, expectations of national economic performance, confidence in a country's economy and so on.

Currency Basics : Does the national economy of India need currency futures?

Does the national economy of India need currency futures?
Every business exposed to foreign exchange risk needs to have a facility to hedge against such risk. Exchange-traded currency futures, as on MCX-SX, are a superior tool for such hedging because of greater transparency, liquidity, counterparty guarantee and accessibility. Since the economy is made up of businesses of all sizes, anything that is good for business is also good for the national economy.

Currency Basics : Can currency futures help small traders?

Can currency futures help small traders?
Yes. The minimum size of the USDINR futures contract is USD 1,000. Similarly EURINR future contract is EURO 1000, GBPINR future contract is GBP 1000 and JPYINR future contract is YEN 1,00,000. These are well within the reach of most small traders. All transactions on the Exchange are anonymous and are executed on a price time priority ensuring that the best price is available to all categories of market participants irrespective of their size. As the profits or losses in the futures market are also paid / collected on a daily basis, the scope of accumulation of losses for participants gets limited.

FREE CURRENCY SUPPORT AND RESISTANCE LEVELS : 05.05.2015

USDINR ( 27-May-15 ) Enters in to Sell Zone and it is showing weakness. It is expected to test near Support levels 63.68 / 63.55 / 63.36 . And the upperside, it has Strong Resistance @ 63.86 upperside, it may test Resistance Levels such as 63.99 / 64.18 / 64.31 . Currently USDINR is Trading @ 63.81 

EURINR ( 27-May-15 ) Enters in to Buy Zone and it is showing Strength. It is expected to test Resistance levels 71.92 / 72.54 / 73.19 . And the lower side , it has Strong Support @ 71.27 downside, it may tank to near support Levels such as 70.65 / 70.00 / 69.38 . Currently EURINR is Trading @ 71.30

GBPINR ( 27-May-15 ) Enters in to Sell Zone and it is showing weakness. It is expected to test near Support levels 97.81 / 97.44 / 96.84 . And the upperside, it has Strong Resistance @ 98.41 upperside, it may test Resistance Levels such as 98.78 / 99.38 / 99.75 . Currently GBPINR is Trading @ 98.18

JPYINR ( 27-May-15 ) Enters in to Sell Zone and it is showing weakness. It is expected to test near Support levels 53.48 / 53.33 / 53.09 . And the upperside, it has Strong Resistance @ 53.72 upperside, it may test Resistance Levels such as 53.88 / 54.12 / 54.27 . Currently JPYINR is Trading @ 53.64

FREE CURRENCY RESEARCH ANALYSIS : 05.05.2015

FREE CURRENCY VOLUME ANALYSIS : 05.05.2015

SUCCESS IN CURRENCY SIGNATURE PACK TODAY: 30.Apr.2015

USDINR ACHIEVED OUR FIRST TARGET (Profit 10 Paise)
JPYINR ACHIEVED OUR FIRST TARGET (Profit 16 Paise)
EURINR ACHEIVED TRIPLE TARGETS (Profit 44 Paise)

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FREE CURRENCY STBT (SELL TODAY BUY TOMORROW) TIPS FOR TODAY:30.Apr.2015

FREE CURRENCY FOREX TIPS - RUPEEDESK 
 ( Paper Trading Practice for Currency Segment USDINR/EURINR/GBPINR/JPYINR ) 

4:51 PM : Sell USDINR (MAY) SB 63.71 SL 63.8200 Target 63.6100 / 63.5300 / 63.45
4:51 PM : Sell EURINR (MAY) SB 71.16 SL 71.2700 Target 71.0600 / 70.9800 / 70.90
4:51 PM : Sell GBPINR (MAY) SB 98.06 SL 98.1700 Target 97.9600 / 97.8800 / 97.80
4:51 PM : Sell JPYINR (MAY) SB 53.61 SL 53.7200 Target 53.5100 / 53.4300 / 53.35

FREE CURRENCY BTST (BUY TODAY SELL TOMORROW) TIPS FOR TODAY:30.Apr.2015

FREE CURRENCY FOREX TIPS - RUPEEDESK 
 ( Paper Trading Practice for Currency Segment USDINR/EURINR/GBPINR/JPYINR ) 

4:51 PM : Buy USDINR (MAY) SA 63.87 SL 63.7600 Target 63.9700 / 64.0500 / 64.13
4:51 PM : Buy EURINR (MAY) SA 71.32 SL 71.2100 Target 71.4200 / 71.5000 / 71.58
4:51 PM : Buy GBPINR (MAY) SA 98.22 SL 98.1100 Target 98.3200 / 98.4000 / 98.48
4:51 PM : Buy JPYINR (MAY) SA 53.77 SL 53.6600 Target 53.8700 / 53.9500 / 54.03

Indian Currency Futures Tips, 10th Session: 30.Apr.2015

CURRENCY TRADING TIPS - RUPEEDESK 
( Paper Trading Practice for Currency Segment USDINR/EURINR/GBPINR/JPYINR ) 

4:29 PM : Buy USDINR (MAY) SA 63.96 SL 63.85 Target 64.06 / 64.14 / 64.22
4:29 PM : Sell USDINR (MAY) SB 63.80 SL 63.91 Target 63.70 / 63.62 / 63.54
 USDINR (MAY) : INTRADAY TREND : UP SL : 63.82 

4:29 PM : Buy EURINR (MAY) SA 71.52 SL 71.41 Target 71.62 / 71.70 / 71.78
4:29 PM : Sell EURINR (MAY) SB 71.36 SL 71.47 Target 71.26 / 71.18 / 71.10
 EURINR (MAY) : INTRADAY TREND : UP SL : 71.21 

4:29 PM : Buy GBPINR (MAY) SA 98.55 SL 98.44 Target 98.65 / 98.73 / 98.81
4:29 PM : Sell GBPINR (MAY) SB 98.39 SL 98.50 Target 98.29 / 98.21 / 98.13
 GBPINR (MAY) : INTRADAY TREND : DOWN SL : 98.81 

4:29 PM : Buy JPYINR (MAY) SA 53.79 SL 53.68 Target 53.89 / 53.97 / 54.05
4:29 PM : Sell JPYINR (MAY) SB 53.63 SL 53.74 Target 53.53 / 53.45 / 53.37
 JPYINR (MAY) : INTRADAY TREND : UP SL : 53.55 

Rupeedesk Currency Tips, 9th Session: 30.Apr.2015

CURRENCY TRADING TIPS - RUPEEDESK 
( Paper Trading Practice for Currency Segment USDINR/EURINR/GBPINR/JPYINR ) 

4:01 PM : Buy USDINR (MAY) SA 64.02 SL 63.91 Target 64.12 / 64.20 / 64.28
4:01 PM : Sell USDINR (MAY) SB 63.86 SL 63.97 Target 63.76 / 63.68 / 63.60
 USDINR (MAY) : INTRADAY TREND : UP SL : 63.82 

4:01 PM : Buy EURINR (MAY) SA 71.46 SL 71.35 Target 71.56 / 71.64 / 71.72
4:01 PM : Sell EURINR (MAY) SB 71.30 SL 71.41 Target 71.20 / 71.12 / 71.04
 EURINR (MAY) : INTRADAY TREND : UP SL : 71.21 

4:01 PM : Buy GBPINR (MAY) SA 98.53 SL 98.42 Target 98.63 / 98.71 / 98.79
4:01 PM : Sell GBPINR (MAY) SB 98.37 SL 98.48 Target 98.27 / 98.19 / 98.11
 GBPINR (MAY) : INTRADAY TREND : DOWN SL : 98.92 

4:01 PM : Buy JPYINR (MAY) SA 53.86 SL 53.75 Target 53.96 / 54.04 / 54.12
4:01 PM : Sell JPYINR (MAY) SB 53.70 SL 53.81 Target 53.60 / 53.52 / 53.44
 JPYINR (MAY) : INTRADAY TREND : UP SL : 53.55