At the beginning of the new year 2020, we’re happy to announce that we are among the few brokers in India to introduce Cross Currency trading on our platforms. Until recently when NSE launched this segment, trading in cross-currency pairs/international forex pairs was not possible within the regulatory framework. Hence, traders who wanted to take an exposure in popular pairs such as EUR-USD or USD-JPY had to open an account with some obscure forex brokers that are not regulated in India. These CFD platforms that offered such trading facilities are illegal in India and are known for their rampant malpractices. They are known to have direct conflict of interest with their clients which is not the best place to be if you are risking your money. I strongly recommend you to avoid trading forex on CFD platforms that are not regulated by SEBI.
The launch of Cross currency at FYERS was delayed due to lengthy compliance processes, key settlement issues and getting our platform functionality tested before the launch amidst our other developments. We’re finally live on Cross Currency segment and all clients who are enabled in the currency derivatives segment (CDS) can trade the global currency pairs as follows on NSE:
- (EUR/USD) Euro-US Dollar
- (GBP/USD) British Pound – US Dollar
- (USD/JPY) US Dollar – Japanese Yen
You can read more about Cross-Currency trading and details of the settlement mechanisms in our blog NSE Introducing Forex Trading In Cross Currency Pairs. We had published this blog post when NSE was still planning to introduce the segment in 2016.
Key points to note about the Cross Currency trading:
- Futures and Options contracts are available for these currency pairs.
- We provide data on our charts starting from February 2018 when the segment was launched by NSE. To view the historical data on charts, make sure you have selected “Continuous Futures Charts” from the settings panel from the dashboard on FYERS Web.
- The volumes are currently very low as compared to USDINR contracts. It makes sense to place limit orders when trading to reduce impact cost to some extent.
- The market timings for these contracts will be from 9 AM to 7:30 PM, Monday to Friday. Considering that forex markets are traded 24/7, closing at 7:30 PM which is just around the time US trading hours begin can leave you exposed to overnight fluctuations as the maximum trading volumes occur during US hours. This is something to be aware of if you are going to carry positions overnight.
- Order Types – Apart from Cover Orders & Bracket Orders (CO/ BO), you can place other order types to trade in this segment. We have disabled CO/BO due to the lack of liquidity in the cross currency contracts.
- The tick size for the cross currency pairs are –
- EUR/USD – 0.0001
- GBP/USD – 0.0001
- USD/JPY – 0.01
- The contracts will be cash-settled in Indian Rupees (INR).
- Daily Settlement – T+1 & Final Settlement T+2.
- The daily settlement price is calculated on the basis of the last half an hour weighted average price across exchanges.
- The final settlement price is calculated w.r.t RBI reference rate.
- Profit/Loss in a foreign currency will be converted using applicable RBI rate for the day.
- Currently, there are monthly contracts are available in this segment.
Cross Currency Trading is finally here and we hope our decision to provide it on our platforms adds value to you. We appreciate all the feedback we received in this regard. Thanks for your patience and we wish you a very Happy New Year!
For any queries, you can visit our Support Portal. To learn more about Currency Trading, I recommend you to read the Currency Module of School Of Stocks. To get the latest updates, please visit our Notice Board.
Tejas is the Co-Founder & CEO at FYERS, the youngest team to get NSE’s broker license. He has a specialization in finance and has over 10 years of work experience spanning across proprietary trading, risk management, and broking. Tejas & his team started FYERS, a technology-focused brokerage as a mission to transform the trading/investment landscape in India.