Have you considered investing in currencies? The currency market is the largest financial market in the world. With low margin requirements and strong regulations, offer a rewarding investment proposition. Refer to the presentation for more information on investing in currencies.

1. Currency Markets

2. Why Should One Invest in Currencies?
• It is the largest Financial Market in the world
• There are four currency pairs available on the Indian exchanges,
making it easier to trade
• It is a highly regulated and low-risk product
• Lower margin requirement

3. Market Structure
Reserve Bank of India
SEBI BANKS FEDAI
FX BROKERS
MCX NSE USE

4. Basic Terms
Futures and Options trading is permitted over the Currency Exchange
• Initial Margin: The up-front money that must be paid by a customer at the time of entering
into a contract
• Exposure Margin: The margin money charged by the exchange to ensure that the initial
margin does not decline below a particular level
• Additional Margin: In case of sudden higher-than-expected volatility, the exchange calls for
additional margin, which is a pre-emptive move to prevent a breakdown
• Mark-to-Market (MTM): At the end of each trading day, the margin account is adjusted to
reflect the trader's gain or loss. This is known as marking to market the account of each trader

5. Product Specifications
Daily Settlement

Closing price of each contract – last 30 minutes weighted average

T+1

Through your clearing member

Paid or received in cash
Final Settlement

RBI fixing price at 12 noon on last trading day

Net settled in cash

6. Contract Information
Profit / Loss
Margin
Currency Lot size Price Quote (Per Tick in
(%)
Rupee)
USD - INR 1,000 0.0025 5% 2.5
EUR - INR 1,000 0.0025 5% 2.5
GBP - INR 1,000 0.0025 5% 2.5
JPY - INR 100,000 0.0025 5% 2.5

7. Factors Influencing Prices
Macro Economic Factors:
1. Monetary action/policy
2. RBI intervention
3. Dollar liquidity
4. Economic and Political scenario
Micro Economic Factors:
1. Global sentiments
2. Performance of other currencies
3. Geo-political situations
4. Commodity price movements

8. Market Timings
Product Monday - Friday Saturday NSE Currency Derivates
9 AM - 5 PM Non Working
Product Monday- Friday Saturday
NSE Currency
9 AM - 5 PM Non-Working
Derivatives

9. Type of Clients
• Users of currency (Hedgers)
• Currency Traders (Speculators)
• Investors – Retail & HNI

10. Market Activity
Hedging
• Banks
• Importers & Exporters
• Corporate
Trading / Speculation
View on appreciation / depreciation of USD,EUR,GBP,JPY against INR
Arbitrage
• Inter-market (OTC Forwards and NSE - Futures)
• Inter-exchange ( NSE and MCX-SX, NSE and DGCX)

11. OTC v/s Exchange Traded Futures
Exchange Traded
OTC Market
Futures
High; online real-time
Price Transparency Low; bilateral contracts with banks screen
Margins equate all
Liquidity Subject to credit limits
participants
Settlement Fully notional unless cancelled Net settled in INR
Clearing all trade
Exposure to your counterparts
Credit Exposure (banks)
guarantee from
corporations
500+ trading
Execution Only banks members including
banks
Margins & MTM are
Margins / MTM Margins & MTM not required
mandatory

12. Fundamentals of Currencies
• Supply and Demand
• Rise in debt
• Growing uncertainty on global economies
• Capital Market Movements - Outflows/Inflows
• Global liquidity
• Hedge Funds

13. Characteristics of USD
• International currency
• Safest after Gold
• Currency used to Buy / Sell global commodities

14. Services Offered
• Daily Technical Calls: Profit from daily trading ideas based on proven technical
expertise provided through SMS
• Positional/Medium Technical Call Report: Short-term (weekly) view-based
fundamental and technical calls on select currencies
• Focused Currency Report: In-depth study of fundamental and technical aspects
of select currencies
• Daily margin reporting on currencies: Report on daily margins as specified by
the exchanges

15. Why Asit C. Mehta?
• We believe in creating value for each individual who relies on us for
his/her investment needs
• We advise our clients to trade depending on the opportunity, as opposed
to trading to generate brokerage
• We pay more importance to the quality rather than the quantity of calls
we generate
• We provide intra-day as well as positional calls
• We professionally advise clients on their individual trading positions
• We operate a research desk that is well-equipped to cater to your
investment needs
• We undertake risk management on a real-time basis
• We are launching an updated website with online web-based trading
services shortly

16. Risks to be Considered
• Understand the concept of leverage
• Know the amount of gain or loss that will result from any given change in
the price of the particular futures contract that you are trading
• If you are uncomfortable with huge losses, always put a stop loss in the
contract that you are trading

17. Trading Mantras
• Plan your trade
• Keep records of your trading results
• Limit your losses - use stop loss
• Never cancel a stop loss order after you have placed it
• Have you taken a loss? Forget it quickly
• Have you taken a profit? Forget it even quicker!
• Always maintain self-discipline by following a pre-determined set of
rules

18. How to Get Started?
Documents Required:
• 1 photograph
• Pan card photocopy (self attested)
• Address proof (self attested)
• Last 6 months’ Bank Statement (self attested)
• Cheque in favour of Asit C. Mehta Investment Interrmediaties Pvt Ltd.

19. THANK YOU