Karvy
Currency Derivatives Segment, a specialized group vertical within Karvy Stock
Broking Limited, has been established in 2008 to cater to the growing needs of
corporate houses to manage currency exchange rate risk. With the changing
dynamics and increasing volatility of exchange rates across the globe,
companies exposed to currency risk face the challenge of maintaining continued
profit margins. Currency Derivatives would be one of the best options to manage
any related exchange rate risk and be free from the worries of market
uncertainties.
At Karvy Currency
Derivatives Segment (CDS), we provide customized hedging strategies for
importers, exporters and companies with foreign exchange exposure. We offer
forex advisory and brokerage service for the Indian currency derivative market,
and provide a robust and reliable online trading platform. Currency Derivatives
Segment – Karvy Stock Broking Limited is an active member of the National Stock
Exchange (NSE), Metropolitan Stock Exchange of India (MSEI) and Bombay Stock
Exchange (BSE).
WHAT
ARE CURRENCY DERIVATIVES?
These are options and
futures contracts through which you can buy or sell specified quantities of
pairs of currencies at a future date (which is predetermined). The price or
exchange rate is decided on the date of purchase. The derivatives are similar
to options and futures in the stock market, aside from the fact that currency
pairs are the underlying assets.
Currencies are often traded
in by banks and financial trading institutions. Individual investors can also
trade in currency derivatives to take advantage of variations in currency
exchange rates. The market for currency trading is one of the biggest and
fastest growing in the world.
HOW
DO CURRENCY DERIVATIVES WORK?
Trading in these
derivatives gives you an option to trade in four foreign currencies which are
pegged against the Indian rupee. You can trade through futures trading
contracts for different foreign currencies through leading stock exchanges in
India. However, foreign institutional investors and non-resident Indians cannot
trade in this market.
Investors can hedge against
foreign exchange risk and benefit from the rupee’s movement against major
foreign currencies. There has been an increase in volumes of trading in
currency futures over the years. The euro, Japanese yen, British pound and US
dollar are the major currencies for which you can get currency derivatives
paired with the rupee.
View more at https://www.karvy.com/currency-derivatives
