TradingTrading Platforms

Introducing Cross Currency Trading

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: 

  1. (EUR/USD) Euro-US Dollar
  2. (GBP/USD) British Pound – US Dollar
  3. (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 Khoday

Tejas Khoday

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.

11 Comments

  • Avatar anoop says:

    Is cross currency trading available now in India? and from where to trade? I mean what are different brokers?

    • Tejas Khoday Tejas Khoday says:

      Yes, it is available. You can open an account with us and trade in cross currencies. I am not sure about other brokers.

  • Avatar Bikash says:

    It seems like Fyers is flying ahead of Zerodha. More opportunities for currency traders here. What about the vehicle currency here? Is it Dollar?

  • Avatar Rajan says:

    Honestly I’ve wanted to invest in forex market but it’s very risky as you’ve mentioned. This looks intriguing so I’ll check it out. Great Article Mr. Tejas

  • Avatar Rahul says:

    Wow, thanks a ton Tejas. Indian market volume is high only at the first and last hour of the day and rest is all dried up. I was eagerly waiting for this because of liquidity but little disappointed by looking at future contract volumes and that too till 7:30 PM when real heavy volume from US begins. Anyways Thanks for implementing it, I knew Fyers will be the first one to introduce cross currency FNO trading.

    • Tejas Khoday Tejas Khoday says:

      Hey Rahul, Thx. Yeah, more people need to trade so the product can evolve and trading hours can be extended. We wanted to implement it a long time ago but then the procedures involved before going live with a new segment/product are not as simple. Anyways, I hope you trade profitably on cross currency pairs. All the best!

  • Avatar VolatileChetan says:

    Good start to 2020 Mr. Tejas! Can you make videos about this?

  • Avatar Dhruv21 says:

    Good one, this is still not available in Zerodha.

  • Avatar Rehansh__ says:

    No volumes in this.. How to trade?

  • Avatar Rishi says:

    But does NSE provide same leverage like IC markets?

  • Avatar Arjun says:

    Has NSE forgotten about this or what? Nobody speaks about this. I and my friends had requested zerodha to launch but they are not bothered either. Glad Fyers finally launched it hope you introduce BO & CO too.

Leave a Reply

Submit & Download
×
Submit & Download
×