Trading EURUSD Currency future on NSE

Trading EURUSD Currency future on NSE

We know ..We can trade Currency future on nse or mcx-sx
USD/INR, EUR/INR, GBP/INR, JPY/INR.
Can we trade EURUSD or GBP/USD Future ????
First reaction will be… No…we can not, since it is not available on mcx-sx or NSE.

Do you know it is possible to Trade EURUSD or GBPUSD future on NSE ….????
There is Out of Box solution.
Let me tell you how.
First see some calculations on international pair to understand it.
EURUSD = EURJPY / USDJPY ……..you can see it live
EURGBP = EURUSD/GBPUSD……

When you buy EURUSD what you are doing ?
You are buying EUR and selling USD
when you buy EURJPY ….you have buy EUR and sold JPY
when you sell USDJPY ….you have sold USD and buy JPY

Now if you open two pos 1st buy EURJPY and 2nd sell USDJPY…..what is effective pos ?
Effective pos is..you have buy EURUSD…since JPY got hedged…since you have buy and sell JPY in two pos.

Like this…if you buy EURINR future and sell USDINR future …..Effective pos is buy EURUSD future.
if you sell EURINR future and buy USDINR future …..Effective pos is sell EURUSD future.
You can see it Live…take EURINR price and divide it by USDINR and you get EURUSD price…this will come near to international EURUSD price. There will be some small difference due to spot and future.
So….you can trade EURUSD future in india ….got it ?
This is EURUSD synthetic future.
You can watch EURUSD spot chart and trade EURUSD future…

What are problems in trading EURUSD future on NSE.
1st Time is bad…9:15am to 5pm….you can trade EURUSD future during this time slot only.
2nd since you are opening two pos…brokerage will be double
3rd Due to double brokerage breakeven increases..

If currency future trading time extend till 11:30PM like commodity then there will be some opportunity in trading EURUSD future….else..not worth.. Since major move in EURUSD can happen in US session.

Pl correct me if I am wrong.
I have not tested or traded this on Live account. So don’t know if any other aspect which is overlooked.
You can do paper trade…and share views.

NSE Links for Currency Future.
' http://www.nseindia.com/live_market/dynaContent/live_watch/curr_der_stock_watch.htm '
' http://www.nseindia.com/live_market/dynaContent/live_watch/fxTracker/optChainDataByExpDates.jsp '

RD bhai what about other advantages of FOREX like liquidity (no slippage) , high leverage (up to 400:1) , no rollover chakkar, no chance of going into debt (auto close position on margin call), free excellent charting (no need to format data everyday and load in charting program like in amibroker or adget) 24 hours trading, can learn by starting and test skills with even small account of 100 dollars (better than paper trading)

No other asset can match or even comes close to forex.

i think the only way now for us to trade Forex is to be an NRI .... need to spend 6 months outside the country so you're still a citizen but a "non-resident"

If anyone knows any other legal way to trade forex please tell us

thanks for the info.

Except for the cost factor, this solution looks great.

thanks.

honestly i dint understand your logic.. mind giving us a LIVE example..

This seems to be a good trading strategy for trading EUR/USD using INR as a channel . :clapping:

However one has to be proficient in understanding the moves of the currencies in relation to each other.

Thanks Mr. Ramdas for sharing .

Ramdas.

On the face of it looks like a great strategy. As the reverse sale helps you to have lesser margin or credit in your account. Will check this in detail and get back with readability report. Thanks

Except for the cost factor, this solution looks great.

i think the only way now for us to trade Forex is to be an NRI .... need to spend 6 months outside the country so you're still a citizen but a "non-resident"

Hello Ramadas

This is a report of my preliminary work on the idea. Its a good strategy but as mentioned earlier in my post about margin ... I realised the options arent available for EUR INR. So we need to give twice the margin to trade like this. The cost per 10lots of trade working out to around Rs.150 which is Rs.300 everytime.

This strategy can work in 2 cases.

1. You assesing the EUR USD trend and taking only one side of the trade ... so if you want to go long in EUR against USD .. BUY EUR INR or SELL USD INR. This might give the desired result with high correlation.

2. Trade medium to long term timeframe which will help you reduce cost and the result comes as close as possible to the original pair.

I tried it on my strategy ... from July 26 when EUR gave a buy (continues to) till date... the return with 20% margin in original EUR USD pair is 22% and in our EURINR buy and USD INR sell is 13%... All gross.

So in short this replication is expected to give you 60%-65% correlation.

While long EUR INR alone from 25th July would have given close to 23% which is the same as EURUSD pair. ...

Think through ... :thumb: thanks for the idea again

with this logic we can trade the foll pairs.

EURUSD
EURGBP
EURJPY
USDGBP
USDJPY
GBPJPY

I think even if the corelation happens to be 90% ,this would give an amazing option to trade forex pairs.

Thanks Ramdas for sharing an idea.