In this article, you will learn how to trade USDINR in Indian Stock Market. This trading falls under the Currency trading category. Just like Stocks, you can trade currency pairs like USDINR, EURO/INR in the currency market. Currency trading is offered by 3 exchanges in India that is NSE (National Stock Exchange), BSE (Bombay Stock Exchange), and MCX-SX.
USDINR can be traded in two ways that are futures and options. 1 lot of USDINR means 1000 USD.
For 1 lot of USDINR futures margin requirement is around RS 2000. If futures moves 1 paisa then you will make Rs 10 profit.
For trading options, you just need to pay the premium if you are buying options. For example, if the Call option price is 10 paisa then you need Rs 100 to buy 1 lot.
You can use any broker like Zerodha, Upstox, etc. to trade USDINR.
To simplify things see the below table:
|Lot Size||$1,000||In stock derivatives, the lot is the number of shares, but here it’s a dollar amount|
|Underlying||The rate of Indian Rupee against 1 USD|
|Tick Size||0.25 Paise or in Rupee terms INR 0.0025|
|Trading Hours||Monday to Friday between 9:00 AM to 5:00 PM|
|Expiry Cycle||Up to 12-month contracts||Note, stock derivatives have an expiry of up to 3 months.|
|Last trading day||Contracts trade till 12:30 PM, 2 days before the last working day.||Stock derivatives continue to trade till 3:30 PM on the expiry day.|
|Final Settlement day||Last working day of the month|
|Margin||SPAN + Exposure||Usually, SAPN is about 1.5%, and exposure is around 1%. Hence roughly about 2.5% is the overall margin requirement.|
|Settlement Price||RBI Reference rate on the day of Final settlement||The closing price of spot|
A screenshot of the chart of USDINR :