Forex futures trading involves buying and selling standardised currency futures contracts on regulated exchanges — obligating the parties to exchange specified amounts of two currencies at a predetermined exchange rate on a fixed future settlement date. In India, currency futures are traded on NSE, BSE, and MSE (Metropolitan Stock Exchange), with the most actively traded contracts being USD/INR, EUR/INR, GBP/INR, and JPY/INR. SEBI and RBI jointly regulate currency futures in India — with specific eligibility requirements for participants, position limits, and margin requirements. Indian exporters use USD/INR futures to lock in favourable exchange rates for their future USD receivables, protecting against rupee appreciation that would reduce the rupee value of their earnings. Importers use USD/INR futures to hedge against rupee depreciation that would increase their rupee cost of USD payments. The contract size for USD/INR futures on NSE is USD 1,000, making it accessible to retail participants. Settlement is cash-based — no actual currency delivery occurs — with the final settlement price determined by the RBI reference rate on the expiry date. For speculative traders, forex futures provide leveraged exposure to USD/INR movement with significantly lower transaction costs than OTC forex spot trading. The availability of both futures and options on currency pairs allows sophisticated participants to construct hedging strategies that precisely match their specific foreign currency exposure profiles.
For android only
