The Power Of Currency Trading


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Learn all about trading in currencies with this informational presentation that will not only give you interesting insights on the 'Power of Currency Trading', but will also tell you how you can make the most of trading in this amazing segment.
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The Power Of Currency Trading

  1. 1. Strictly Private and ConfidentialPower of Currency TradingInvestment class to add in portfolio
  2. 2. ForeignExchangeMarketsCommodityMarketsEquityMarketsCurrent scenario of International Financial Market
  3. 3. ForeignExchangeMarketsCommodityMarketsEquityMarketsCurrent scenario of Indian Financial Market
  4. 4. Why Currency Trading?Currency trading is basically trading inDerivatives.Currency Derivatives are Futures andOptions contractsUnderlying happens to be CurrencyPairs instead of Stocks.
  5. 5. Currencies you can trade inUSDINR- US DollarEURINR- EuroGBPINR- PoundJPYINR- Yen
  6. 6. Factors affecting: Appreciation of INREvents likely toimpact USDINRrateGeneral trend fordemand/supply ofUSDImpact on USD Impact on INRIncrease in exports ofIndiaExcess inflow of USDin the countryDepreciates AppreciatesRBI is selling USD tomeet demand for thedollarSupply of USDincreasesDepreciatesAppreciatesNRI Forex remittanceis increasingIncrease in USDinflowDepreciates AppreciatesPositive trade balanceIncrease in USDinflowDepreciates Appreciates
  7. 7. Factors affecting: Depreciation of INREvents likely toimpact USDINRrateGeneral trend fordemand/supplyof USDImpact on USD Impact on INRIncrease in importsof IndiaDemand for USDincreasesAppreciates DepreciatesRise in global pricesof commoditiesDemand for USDrises due to costlierimportsAppreciates DepreciatesFIIs buying backUSDExcessive USDoutflowAppreciates DepreciatesRBI is buying USD toabsorb excess USDdue to Forex inflowsAbsorption of excessUSD liquidityAppreciates Depreciates
  8. 8. USD / INR relationship with Nifty (Inverse Relation)USD/INR is inversely related to the markets (Sensex).When Sensex goes down, value of currency appreciates.Source: Bloomberg Finance L.P.
  9. 9. Currency trading at Edelweiss Broking Limited:Additional Investment/TradingopportunityNo documentation hassle*.Extended trading hours- Monday toFriday, 9AM to 5PMLesser margin requirements as comparedto trading in Equities.Unlike Trading in Commodities, Trading incurrencies F&O can be done on the sameplatform as Equities.*The Trading account of client is opened after completion of documentary requirement with requisite form.* Margin will not be less than that specified by SEBI/Exchanges
  10. 10. Currency trading at Edelweiss... (cont’d)Convenient and cheaper mode tohedge currency for importer andexporterPrice transparency- get live, marketdriven, real time quotesTrade from anywhere, anytimeSpecialized research through allmediums (Online, email, SMS)Trade using Extreme, Website,Mobile App, Call and Trade
  11. 11. Contract Specifications for USD & EUROUSD/INR(monthly contract)Margin: 3%-4% (Approx) Rs.1750CMP: Rs.55.64/- (1USD)Contract Value: Rs. 55,640/-(approx)Price Tick: Rs. 0.0025Expiry: 2 days prior to lastworking dayLot size: 1000 USDEUR/INR(monthly contract)Margin: 3%-4% (Approx) Rs.2065CMP: Rs.68.85/- (1USD)Contract Value: Rs.68,850/-(approx)Price Tick: Rs. 0.0025Expiry: 2 days prior to lastworking dayLot size: 1000 EuroSource:* Margin will not be less than that specified by SEBI/Exchanges
  12. 12. Contract Specifications for GBP and JPYGBP/INR(monthly contract)Margin: 3%-4% (Approx) Rs.2598CMP: Rs.86.58/- (1GBP)Contract Value: Rs. 86,580/-(approx)Price Tick: Rs. 0.0025Expiry: 2 days prior to lastworking dayLot size: 1000 GBPJPY/INR(monthly contract)Margin: 3%-4% (Approx) Rs.2130CMP: Rs.71/- (100JPY)Contract Value: Rs. 71,000/-(approx)Price Tick: Rs. 0.0025Expiry: 2 days prior to lastworking dayLot size: 1,00,000Source:* Margin will not be less than that specified by SEBI/Exchanges
  13. 13. Strictly Private and ConfidentialHow to place a trade?
  14. 14. To trade on WebsiteClick on ‘Currency’ on the tradepageSelect Buy/SellSelect instrument typeSelect the currency you wish totrade in from symbolEnter details like price, quantity,stop loss and complete the orderClick on Buy/Sell to complete the orderClick on Get Quote to check the price
  15. 15. To trade on Xtreme To get the place order screen, press F1 to Buy F2 to Sell Select Exchange Segment as CDS, enter price, quantity ,order type, selectexpiry date and submit to complete the order. Alternatively, Select Exchange Segment as CDS, select order type, currencypair expiry date to add top market watch and trade
  16. 16. To trade on MobileDownload & Install the mobileapplication from the apps store bysearching Edelweiss Mobile Trader Login to the app Click on the Trade icon Select Exchange Segment asCDS, enter price, quantity , ordertype, select expiry date and submit tocomplete the order.
  17. 17. Services on offerDedicated Research: Currencies Researchdesk, covering all verticalsMultiple Exchange Coverage: MCS-SX/NSE- CDSMultiple limit Platforms:Fungible limit on stock holdings – You canallocate the funds you hold in equitiesacross the currency segment too.Standard Cash LimitsIntraday Leverage: Option to carry forwardintraday positions subject to marginavailability
  18. 18. Trade Online: Omnesys terminalprovided free of chargeView Positions: Back office loginprovided to all clientsCharges:Low transaction charges/CompetitivebrokerageSubscription plansServices on offer
  19. 19. Research from EdelweissProduct Description RiskIndicativePotentialUpsideEDELEXPRESS Currency 6-8 bps12-16 bps percallEDELMAXIMA Currency 30 bps 50 bps per call
  20. 20. FAQsDaily Margin requirement: One time initialmargin and mark to market on daily basis as perexchange normsInterest on initial deposit: NoMode of payment: BankGuarantee/Cheque/FD/NEFT/RTGSProduct Cycle: 12 month maturity contract isavailable with every month expiryFacility to roll over the position for the nextcontract
  21. 21. DisclaimerBroking services offered by Edelweiss Broking Limited under SEBI Registration No.:INB/INF/INE231311631 (NSE) and INB/INF011311637 (BSE) and INB/INF/INE261311634 (MCX-SX);Corporate Office: Edelweiss House, Off CST Road, Kalina, Mumbai - 400098;Tel. (022) 4009 4400Edelweiss Broking Ltd. also acts in the capacity of the distributor for products such as IPO and Mutual Funds etc..Mutual Fund Investments are subject to market risks. Please read all scheme related documents carefully beforeinvesting.DisclaimerThis presentation is provided for assistance only and is not intended to be and must not alone be taken as the basisfor an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of thispresentation should make such investigation as it deems necessary to arrive at an independent evaluation of aninvestment in the securities of companies referred to in this presentation (including the merits and risks involved), andshould consult his own advisors to determine the merits and risks of such investment. The investment discussed orviews expressed may not be suitable for all investors. The information contained herein is from publicly available dataor other sources believed to be reliable, but we do not represent that it is accurate or complete and it should not berelied on as such. Edelweiss Web Services Ltd. (Edelweiss) or any of its affiliates/ group companies shall not be in anyway responsible for any loss or damage that may arise to any person from any inadvertent error in the information.We and our affiliates, group companies, officers, directors, and employees may have long or short positions in thesecurities of company (ies) mentioned herein or have other potential conflict of interest with respect to anyrecommendation and related information and opinions. The views expressed in this document / article / interviewreflect the personal views of the author and not that of Edelweiss. Past performance is not necessarily a guide to futureperformance.The data contained in this presentation is only indicative / illustrative.This information is subject to change without any prior notice. Edelweiss reserves the right to make modifications andalterations to this statement as may be required from time to time. However, Edelweiss is under no obligation to
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  23. 23. DisclaimerThis document does not constitute an offer or invitation to purchase or subscribe for any securities or solicitation ofany investments or investment services and/or shall not be considered as an advertisement tool. "U.S. Persons" aregenerally defined as a natural person, residing in the United States or any entity organized or incorporated under thelaws of the United States. US Citizens living abroad may also be deemed "US Persons" under certain rules.Disclaimer for U.K. Persons:The contents of this document have not been approved by an authorised person within the meaning of the FinancialServices and Markets Act 2000 ("FSMA").In the United Kingdom, this document is being distributed only to and is directed only at (a) persons who haveprofessional experience in matters relating to investments falling within Article 19(5) of the FSMA (Financial Promotion)Order 2005 (the “Order”); (b) persons falling within Article 49(2)(a) to (d) of the Order (including high net worthcompanies and unincorporated associations); and (c) any other persons to whom it may otherwise lawfully becommunicated (all such persons together being referred to as “relevant persons”).This document must not be acted on or relied on by persons who are not relevant persons. Any investment orinvestment activity to which this document relates is available only to relevant persons and will be engaged in onlywith relevant persons. Any person who is not a relevant person should not act or rely on this document nor any of itscontents. This document must not be distributed, published, reproduced or disclosed (in whole or in part) by recipientsto any other person.Disclaimer for Canadian Persons:Edelweiss Broking Ltd. (EBL) and Edelweiss are not a registered adviser or dealer under applicable Canadian securitieslaws nor has it obtained an exemption from the adviser and/or dealer registration requirements under such law.Accordingly, any brokerage and investment services provided by EBL and Edelweiss, including the products andservices described herein are not available to or intended for Canadian persons.This presentation and its respective contents do not constitute an offer or invitation to purchase or subscribe for anysecurities or solicitation of any investments or investment services.
  24. 24. Strictly Private and ConfidentialStart Currency Trading NOW!