Trading inCurrency Futures and Options is regulated by RBI and SEBI jointly. Any residentIndian, individual, bank or corporation is allowed to participate. However, as ofnow, FIIs and NRIs are not permitted to trade.Exchange traded future contracts are favored over OTC markets because there is greaterPrice Transparency for Buying and Selling Price as well Real-time price access madeavailable from any location in India on internet.
As compared to OTC markets, verylow margins are curreny and a higher leverage provided. SMC Global Securities is a Trading cum Clearing Member of allthese exchanges for the currency segment. We believe in the tremendous potentialof currency future to become a dominant force of the Indian financial market witha turnover which can outperform even equity and commodity segment.
It means, taking a futurres in the futures market that is opposite to a position in the physical market, with a view to reduce or limit risk associated with unpredictable changes in the exchange rate.ARBITRAGE: It means locking currency futures trading in nse a profit by simultaneously entering into transactions in two or more markets where there is a price futyres of the same underlying.
If the relation between forward prices and futures price differs, it gives rise to arbitrage opportunities. If there is price differential between two exchanges, it gives rise to arbitrage opportunities.FINANCIAL LEVERAGE: Futurrs putting an upfront margin of (say) 5%, a client can trade in currency futures. SMC provides its sub-broker with the right tools and support.
Associationwith SMC means a strong bond with one of the largest tarding firms of India.