Currency Future

We Introduce the Currency trading from Aastha Agencies which is the Unit of Mohak Commodities Pvt Ltd. Aastha Agencies joins a membership of MCX-Sx, offers leadership in Currency Future and Options trading.

Currency futures are standardized, exchange-traded contracts to buy or sell a currency at a specific price some time in the future. As an essential tool to manage the risks associated with changing currency valuations, Currency futures allow market participants to lock in a currency rate for a specific time period.

At the same time, Currency futures offer a means of potential profits for those who wish to take a view on currency fluctuations, and in doing so accept the risk that businesses and financial institutions wish to offset with electronic trading and efficient risk management systems, Exchange traded currency future is expected to benefit the universe of participants including corporate and individual investors.

Benefits of trading in Currency Futures

• Currency Futures trading is in a fully regulated and transparent market place.
• It does not require one to have an underlying exposure in foreign currency.
• If the Client has an underlying exposure in the foreign currency, Currency Futures can be used effectively to hedge the same. It allows hedge for near 12 calendar months.
• Currency Futures provide investors with access to a new asset class for their portfolio, i.e., Forex.
• Margin trading in Currency Futures allows leverage of funds as it involves buying Currency Futures without having to pay for the entire value of the contract.
• Daily settlement of Marked to Market pay-in and pay-out encourages disciplined trading.
• Smaller and more affordable contract lot size enables a large number of players to enter the market.
• All the trades are done on the recognized stock exchanges guaranteed by the clearing corporations and hence the risks associated with counter party default are eliminated.
• Electronic Trading platform is made available for Currency Futures Trading. Without access to a computer, one can also do trades by calling Aastha Agencies Dealing Room and placing orders with the dealers who will in turn place orders on the Exchange trading platform on the Client's behalf.
• Currency Futures are cash settled and offer convenience to trade.

 

Market Participants

There are three categories of market participants in the Currency Futures Market:

• Hedgers use Currency Futures to protect an existing portfolio (or an anticipated investment) against possible adverse movement. Hedgers have a real interest in the underlying currency. They use Currency Futures to reduce their risk and protect their profits in the underlying activity.
• Investors use Currency Futures as an instrument for investment in the hope of making a profit. They have no interest in the underlying currency other than taking a view on the future direction of the currency price. Day traders have also been attracted by an opportunity to trade in Currency Futures.
• Arbitrageurs profit from price differential of similar products in different markets, e.g. price differential between the outright OTC (Over the Counter) rate and the futures price.

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