Greenbucks Offers The Power of Currency Derivatives
Currency derivative is a contract between the seller and buyer, whose value is to be derived from the underlying asset, the currency amount. A derivative based on currency exchange rates is a future contract which stipulates the rate at which a given currency can be exchanged for another currency as at a future date.
The Benefit of Currency Derivatives
The Currency Derivatives product is a bundle of opportunities for a number of players.
It is a new asset class for diversification of investments for all Resident Indians
It gives hedging opportunities to:
a) Importers and exporters, who can hedge their future payables and receivables
b)Borrowers, who can hedge foreign currency (FCY) loans for interest and principal payments
c)Resident Indians, who can hedge their offshore investments
d)Commodity traders can hedge against unfavourable movements of gold, crude etc.
It gives arbitrage opportunities
It gives trading opportunities because of its volatility and multiplicity
It provides highly transparent rates to traders as it is exchange-traded
Unlike currency forwards offered by banks, currency futures trading does not have to be backed by an underlying merchant transaction exposure
Tight bid ask spreads; usually 0.25 paisa wide
Margin requirements less than 5% to take exposure on a lot size of $1000, €1000, £1000 and ¥1,00,000 respectively
For exporters and importers, no credit line required from their Banker as is the case with forwards
Ideal tool for those with smaller exposures, as in the case of travel needs, educational payments etc.
The Greenbucks Advantage
Facility to our existing offline as well as online customers to trade in Currency derivatives by filling up a simple form. There is no need to open a separate trading account to trade in Currency Derivatives.
Your Cash margin with Greenbucks can be used for both Equity as well as Currency transactions
Online & Offline trading facility on all the bourses. Facility to place buy/sell orders through branches, internet and over the phone.
Receive education on the product through seminars/con-calls organized by Greenbucks. Exclusive daily commentary and research reports by a specialized Currency Analyst Team that helps you take informed decisions
Regular updates on Dollar INR movement with calls to buy and sell
Special consultancy to Exporters, Importers & Corporate for their Forex transactions