RBI news - Introduction of Cross-Currency Futures and Exchange Traded Option Contract

natjay

Well-Known Member
#11
Re: RBI news - Introduction of Cross-Currency Futures and Exchange Traded Option Cont

I'm expecting these new pairs to be available for trading in the next few months (new financial year). So far, only notifications to the effect have been issued by RBI in December. Actual trade flow, systems and guidelines have still to be set up by the exchanges before being passed on to the brokers. This kind of systems implementation will take 3-6 months.

I'm particularly keen on GBP/USD trading because of good volatility. It will be even more interesting if they increase timings to 11.30pm in line with international markets.
 
#12
Re: RBI news - Introduction of Cross-Currency Futures and Exchange Traded Option Cont

I'm expecting these new pairs to be available for trading in the next few months (new financial year). So far, only notifications to the effect have been issued by RBI in December. Actual trade flow, systems and guidelines have still to be set up by the exchanges before being passed on to the brokers. This kind of systems implementation will take 3-6 months.

I'm particularly keen on GBP/USD trading because of good volatility. It will be even more interesting if they increase timings to 11.30pm in line with international markets.
Even I'm eyeing on GBP/USD.

Isn't forex and futures traded 24x5 in India like in US?
 

natjay

Well-Known Member
#13
Re: RBI news - Introduction of Cross-Currency Futures and Exchange Traded Option Cont

Even I'm eyeing on GBP/USD.

Isn't forex and futures traded 24x5 in India like in US?
Nope, fx trading in India ceases at 5pm local time. That's an hour or two before the US markets open. Decidedly, most of the action happens after hours and over night, so that's a downer with gap-up / gap-down openings.

Still, we can trade the Asian and European sessions (at least a significant part of the latter) so all's not lost. if you remember, Asian range breakout methods used to be all the rage a couple years ago. Think GBP/JPY and GBP/CHF... the trading ranges in these pairs used to invoke both shock n awe. Yup... those were the days :)

Anyway, looking forward to the implementation of EUR/GBP/JPY on our exchanges. Hopefully, there won't be a catch.
 
#14
Re: RBI news - Introduction of Cross-Currency Futures and Exchange Traded Option Cont

Yes , even i am looking forward to trade EURUSD among others, 24x7 is spot markets, we will get to trade Futures , which are traded as per Exchange stipulated timings, lets hope we get extended hours with new pairs introduction
 

NJ23

Well-Known Member
#15
Re: RBI news - Introduction of Cross-Currency Futures and Exchange Traded Option Cont

Yes , even i am looking forward to trade EURUSD among others, 24x7 is spot markets, we will get to trade Futures , which are traded as per Exchange stipulated timings, lets hope we get extended hours with new pairs introduction
They'll have to(and I'm sure they will), to attract volumes. Otherwise they(CDS FO) won't be very popular.
 

bpr

Well-Known Member
#18
Re: RBI news - Introduction of Cross-Currency Futures and Exchange Traded Option Cont

They'll have to(and I'm sure they will), to attract volumes. Otherwise they(CDS FO) won't be very popular.
its a no brainer they will quickly became the liquid most instrument to trade even equity futures volume will flow towards it.

Remember currency futures is the cheapest and there is no CTT or STT and they cannot legally tax it.

Already USDINR having very high volumes but the movements are limited once we have Eurusd and the likes then that problem will be solved.
 
#19
Re: RBI news - Introduction of Cross-Currency Futures and Exchange Traded Option Cont

Remember currency futures is the cheapest and there is no CTT or STT and they cannot legally tax it.
What's CTT and STT?

Can you please throw more light on taxes on currency futures in India, at what % are they taxed ?

Thanks
 

natjay

Well-Known Member
#20
Re: RBI news - Introduction of Cross-Currency Futures and Exchange Traded Option Cont

What's CTT and STT?
STT = Securities Transaction Tax (applicable to equity trading)
CTT = Commodities Transaction Tax (applicable to commodity trading)

These are "additional" taxes applicable to traders who dabble in equities and commodities respectively. So far, there's no such additional trade-specific tax in currency trading, hence the relative attractiveness of that instrument.
 

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