Indian Rupee Options
Indian Rupee – Options contracts is an logical extension of the of the Indian Rupee Futures. The options contracts allow market participants to hedge their Indian Rupee exposures using various option strategies as well as a combination of futures and options.
Dubai Gold and Commodities Exchange is the first exchange offshore to offer option contracts. Options allow participants to take a call on the underlying Indian Rupee by paying a small premium, while the option writer can benefit by taking a view on the underlying volatility of the Indian Rupee.
- Hedging window available long after Indian currency markets close
- Arbitrage opportunity with USD-INR options available in offshore
- Two months option contracts are available
- Strikes are available 2.50 Indian Rupees from the at the money strike
- There is no margin applicable to the buyer of an option
- Unique trading opportunity for Indians in the region and international funds with exposure to India to manage their risk
- Options are most leveraged of all financial instruments and various strategies can be built to manage risk in the most cost effective manner for example straddles, strangles , ladders and butterflies
- UAE is a Tax Free jurisdiction ensuring no tax liability arising out of accrued profit
- Market hours from 8.30 AM India time till 1.25 AM India time
- Overlaps most trading zones including Europe and United States
Contract Parameters Trading Symbol DINRO Style European Contract Size One DGCX INR Futures contract Price Quotation US Dollars in Cents per 100 Indian Rupees Tick Size 0.01 US Cents Maximum Daily Price Fluctuation No Daily Limit Delivery Months The nearest two (2) Contract Months are available at all times Last Trading Day Last Trading Day for INR options shall be two (2) Business Days prior to the Last Day of Trading of the month. (Same as the INR Futures) New Contract Listing Five Business Days prior to the Last Trading Day Exercise of Options On the last trading day, all in-the-money options are exercised automatically against Daily Settlement Price. Strike Prices For each INR Option series, there shall be an INR option chain with a strike interval of INR 0.25 converted into US cents equivalent in 2 decimal points. Position Limit To be determined by the exchange Margin Requirement Buyer pays full premium, while the seller is margined on the SPAN basis Trading Hours 07:00 - 23:30 Hours Dubai time (GMT+4) Trading Days Monday through to Friday
Expiry Month Expiry Code Last Trading Day Oct'18 DINRO-20181029 29 Oct 2018 Nov'18 DINRO-20181128 28 Nov 2018