DUBAI — Dubai Gold and Commodities Exchange, or DGCX, started trading on its newly launched Indian Rupee Options Contract on Monday to become the only exchange outside India to offer trading in both futures and options in the Indian currency.JRG International became the first company in the world to execute the first trade in the Indian Rupee Options Contract outside India through DGCX.
Hazza Mohammed Al Daheri, Chairman and Managing Director, JRG International, executed the trade.The contract is available for trading from the beginning of trading hours, thus offering exchange members added flexibility to hedge and manage rupee currency risks in a transparent and regulated trading environment, DGCX said in a statement.
The launch of the Options contract will build on the success of the DGCX Indian Rupee Futures contract, which on September 22, recorded its highest ever daily volume of 34,046 contracts, valued at $1.37 billion.
Each DGCX rupee options contract represents one Indian Rupee Futures contract of two million rupees. Prices are quoted in US cents per 100 Indian rupees, with a minimum premium fluctuation of 0.000001 US Dollars per Rupee ($2 per contract).
Indian expats will get big benefits by using futures and options. These include tax exemption and secured trading system. They can minimise their business and investment risks into smaller level by using INR futures and options, currency traders said.
“This is a milestone for DGCX and the introduction of Indian rupee Option Contract opens vast investment and trading opportunities to Indian and International Investors,” said Sudhir Kumar Shetty, chief operating officer, Global Operations, UAE Exchange Centre LLC. Sajith Kumar, chief executive and Director of JRG International, said through Options Trading in Indian Rupee, traders could engage in trading by taking limited risk, escape from margin calls and can trade with the knowledge of potential maximum loss.
Traders can execute trades by paying premium amount rather than margin amounts. Moreover traders can hedge with open future positions using option strategies. “Using option contracts, clients can limit their loss and open the gain part unlimited. Also traders can enter into the market and can utilize maximum benefits at any situation and can start trading with limited investment amounts,” said Kumar.
He said option trading and strategies are very useful for traders and investors. Since this is complex in nature, JRG International has decided to provide free training in INR Options Trading to customers through its IBMC Investors Club.
“DGCX Indian Rupee Options Contact is the need of the hour as we are experiencing wide fluctuations in Indian rupee over the past few months. Options contracts come as a helping hand to business class investors by enabling them to hedge their business risk arising out of wide fluctuations in Indian currency in a transparent and regulated trading environment,” said Babu Lonappan, Director, JRG International.
27 September 2011