Currency Trading

Understanding  Lot Size, Tick Size, Margin for USDINR, JPYINR, GBPINR, EURINR in MCX-SX and NSE:
In India, NSE and MCX-SX are the currency exchanges, which provide:

    Futures trading on the currency pairs USDINR, EURINR, GBPINR, and JPYINR
    Options trading on USDINR NOW.

Our main focus on this page is to make you understand about Lot Size, Tick Size and Margin needed to trade on USDINR, EURINR, GBPINR and JPYINR. Lot Size (1000) is same for all above mentioned currency pairs. Tick Size (.0025 paisa) is same for all above mentioned currency pairs.

Lot size = 1000 (i.e.) when you buy 1 contract then lot size is 1000
Tick Size =.0025 paisa
Since Lot size is 1000 and for each movement of .0025 tick size, you will be either Gaining or Losing 2.50 Rupees.

Price Movement
= Lot size * Tick Size
= 1000 * .0025
= 2.5 Rupee
(i.e.) 1 movement of Tick Price will be 2.5 Rupees.

So there will be 400 (1 Rupee/.0025) tick price movements within a Rupee
.

Note: If you want to trade on currency futures, brokers may be charging 3% to 5% margin amount, which is based on the lot size and settlement price of the symbol.


Margin Example:

We will assume that current prices of USDINR, EURINR, GBPINR, and JPYINR are 55, 70, 80 and 60 rupees respectively. So the margin amount needed to buy 1 contract:

Formula = current price of currency pair * LOT SIZE * 3%
Margin needed for USDINR = 55*1000*.03= 1650 Rupees
Margin needed for JPYINR=60*1000*.03=1800 Rupees
Margin needed for EURINR=70*1000*.03=2100 Rupees
Margin needed for GBPINR=80*1000*.03=2400 Rupees

Example:
SYMBOL=USDINR; BOUGHT PRICE= 55.1025; LOT SIZE = 1000; TICK SIZE = .0025; SOLD PRICE = 55.8975.
Your margin may be around 1650 rupees and you buy 1 lot of USDINR at 55.1025 and you sell it for 55.8975.

Gross Profit
= (sold price - bought price) * lot size
= (55.8975-55.1025) * 1000
= (.7950) * 1000
= 795 Rupees


Or you can calculate this in another way.
= ((sold price - bought price) / Tick Size ) * Price Movement
= ((55.8975-55.1025) / .0025) * 2.5
= (.7950 /.0025) * 2.5
= 795 Rupees
Sample NSE CURRENCY REPORT:

DATE    INSTRUMENT    UNDERLYING    EXPIRY DATE    MTM SETTLEMENT PRICE
09-Jul-14    FUTCUR    EURINR    28-Jul-14    81.6575
09-Jul-14    FUTCUR    EURINR    26-Aug-14    82.0875
09-Jul-14    FUTCUR    EURINR    26-Sep-14    82.56
09-Jul-14    FUTCUR    EURINR    29-Oct-14    83.495
09-Jul-14    FUTCUR    EURINR    26-Nov-14    84.1025
09-Jul-14    FUTCUR    EURINR    29-Dec-14    84.775
09-Jul-14    FUTCUR    EURINR    28-Jan-15    85.3925
09-Jul-14    FUTCUR    EURINR    25-Feb-15    85.8875
09-Jul-14    FUTCUR    EURINR    27-Mar-15    86.5
09-Jul-14    FUTCUR    EURINR    28-Apr-15    87.16
09-Jul-14    FUTCUR    EURINR    27-May-15    87.7625
09-Jul-14    FUTCUR    EURINR    26-Jun-15    88.39
09-Jul-14    FUTCUR    GBPINR    28-Jul-14    102.6725
09-Jul-14    FUTCUR    GBPINR    26-Aug-14    103.17
09-Jul-14    FUTCUR    GBPINR    26-Sep-14    103.72
09-Jul-14    FUTCUR    GBPINR    29-Oct-14    104.25
09-Jul-14    FUTCUR    GBPINR    26-Nov-14    105.5975
09-Jul-14    FUTCUR    GBPINR    29-Dec-14    105.3
09-Jul-14    FUTCUR    GBPINR    28-Jan-15    107.1375
09-Jul-14    FUTCUR    GBPINR    25-Feb-15    107.5925
09-Jul-14    FUTCUR    GBPINR    27-Mar-15    108.305
09-Jul-14    FUTCUR    GBPINR    28-Apr-15    109.07
09-Jul-14    FUTCUR    GBPINR    27-May-15    109.77
09-Jul-14    FUTCUR    GBPINR    26-Jun-15    110.4975
09-Jul-14    FUTCUR    JPYINR    28-Jul-14    59.0625
09-Jul-14    FUTCUR    JPYINR    26-Aug-14    59.385
09-Jul-14    FUTCUR    JPYINR    26-Sep-14    59.885
09-Jul-14    FUTCUR    JPYINR    29-Oct-14    60.36
09-Jul-14    FUTCUR    JPYINR    26-Nov-14    60.8125
09-Jul-14    FUTCUR    JPYINR    29-Dec-14    61.305
09-Jul-14    FUTCUR    JPYINR    28-Jan-15    61.755
09-Jul-14    FUTCUR    JPYINR    25-Feb-15    62.12
09-Jul-14    FUTCUR    JPYINR    27-Mar-15    62.57
09-Jul-14    FUTCUR    JPYINR    28-Apr-15    63.0525
09-Jul-14    FUTCUR    JPYINR    27-May-15    63.4925
09-Jul-14    FUTCUR    JPYINR    26-Jun-15    63.9525
09-Jul-14    FUTCUR    USDINR    28-Jul-14    60.03
09-Jul-14    FUTCUR    USDINR    26-Aug-14    60.3725
09-Jul-14    FUTCUR    USDINR    26-Sep-14    60.765
09-Jul-14    FUTCUR    USDINR    29-Oct-14    61.1625
09-Jul-14    FUTCUR    USDINR    26-Nov-14    61.5525
09-Jul-14    FUTCUR    USDINR    29-Dec-14    61.965
09-Jul-14    FUTCUR    USDINR    28-Jan-15    62.4
09-Jul-14    FUTCUR    USDINR    25-Feb-15    62.55
09-Jul-14    FUTCUR    USDINR    27-Mar-15    63.1
09-Jul-14    FUTCUR    USDINR    28-Apr-15    64.0125
09-Jul-14    FUTCUR    USDINR    27-May-15    64
09-Jul-14    FUTCUR    USDINR    26-Jun-15    64.465
09-Jul-14    OPTCUR    USDINR                59.77


The following NSE CURRENCY REPORT has been taken on 09th July 2014  from www.nseindia.com.
This table is a sample which explains the different underlying, their contract cycles and price movements.


Explanation for the Headers in the above Table:

Date: Date on which Instrument traded
Instrument: You can see Instruments FUTCUR for FUTURES CURRENCY and OPTCUR for OPTIONS.
Underlying: You can see EURINR, GBPINR, JPYINR, and USDINR. i.e. Euro, Pound, Yen and USD are traded with INR.
Expiry Date: The date when the future contract or option contract expires.
MTM Settlement PRICE: Settlement price of EURINR, GBPINR, JPYINR, and USDINR.
Contract Trading Cycle: 12 months trading cycle.
Example: USDINR: you can see 12 contracts expiring on various Months

Click on the wealth builder - for long term investment Picks.
Traders Call - Day Trading
Wealth Builder - Long Term Picks



10 %, 20%,30%,40%,50%,60%,70%,80%,90% is done..Our target 100% .
Happy Investing
Previous Posts :

1 comments

  1. Ways2 Capital // May 5, 2015 at 4:26 PM  

Free resources , Technical analysis , stock trading books