Indian Rupee – Options contracts are a logical extension of the Indian Rupee Futures. The options contracts allow market participants to hedge their Indian Rupee exposures using various option strategies as well as a combination of futures and options.
DGCX is the first exchange offshore to offer an option contracts. Option contracts allow market participants to manage risk through the trading of volatility in the underlying futures contract.
Hedging window available long after Indian currency markets close
Arbitrage opportunity with USD-INR options available in offshore
Two months option contracts are available
Strikes are available 2.50 Indian Rupees from the at the money strike
There is no margin applicable to the buyer of an option
Unique trading opportunity for market participants
UAE is a Tax Free jurisdiction ensuring no tax liability arising out of accrued profit
Market hours from 8.30 AM India time till 1.25 AM India time
Overlaps most trading zones including Europe and United States
Options are most leveraged of all financial instruments and various strategies can be built to manage risk in the most cost effective manner for example straddles, strangles, ladders and butterflies
| Contract | Parameters |
|---|---|
| Contract Type/Style | Option – European style |
| Contract Name | Indian Rupee/US Dollar |
| Contract Symbol | DINRO |
| Underlying | Indian Rupee/US Dollar Futures Contract (DINR) |
| Contract Size | 1 DINR |
| Notional Contract Value | INR 2,000,000 |
| Trading/Settlement Currency | USD |
| Price Quote | US Dollars quoted in Cents per 100 Indian Rupees |
| Tick Size | US$ 0.01 |
| Tick Value | US$ 2.00 |
| Exercise Price Intervals | INR 0.25 converted to USD to 2 decimal places |
| Introduction of New Exercise Prices | For all contract months: a minimum of 41 Strike Prices in increments of 20 above and 20 below the at-the-money strike |
| Settlement Basis | Assignment of 1 DINR contract at the exercise price. The futures delivery month shall be: |
| Exercise of Options | On Last Trading Day, all in-the-money options are exercised automatically against the FCSP of the DINR |
| Last Trading Day (LTD) | Two Business Days prior to the last Business Day of the contract month |
| Trading Days | Exchange Business Days* |
| Trading Hours | 07:00 – 23:55 Hours Dubai time |
| Trading Months | Monthly contracts for two months forward |
| Margining | Buyer pays full premium, Seller is margined using SPAN |
| New Contract Listing | Five Business days immediately following the Last Trading Day |
| Max Order Size | 200 Lots |
| Wholesale Trades | Block Trade minimum size threshold: 50 lots. EFP/EFS also available. Trades must be submitted 15 minutes after execution |
| No Cancellation Range | See link: www.dgcx.ae/price-limits |
| Expiry Month | Expiry Code | Last Trading Day |
|---|---|---|
| Sep'24 | DINRO-20240926 | 26-Sep-24 |
| Oct'24 | DINRO-20241029 | 29-Oct-24 |
Aertram Trades DMCC, a leading name in the world of commodities trading on the Dubai Gold and Commodities Exchange (DGCX).
1808, Gold Crest Executive Tower,
Cluster C, Jumeirah Lakes Towers, P.O Box 231076, Dubai, United Arab Emirates.
Disclaimer:
AETRAM Trades DMCC (hereinafter referred to as "AETRAM") is a registered company with the Dubai Gold & Commodities Exchange (DGCX) and offers trading services for various products listed on the DGCX platform. As a potential investor, it is important to be aware of the risks involved in trading commodities and financial derivatives.
AETRAM Trades DMCC is a duly licensed and regulated entity by the Securities and Commodities Authority of UAE (SCA) under license number 607017 to conduct Trading broker activities in international markets, and provide Financial Consultation and Financial Analysis services and Promotion. Additionally, AETRAM Trades DMCC operates as a regulated Broker/Clearing Member of DGCX (Registration number DMCC0548 and License number DMCC-30297). Our registered office is located at Office # 3001, Fortune Tower, Cluster C, Jumeirah Lakes Towers, P.O Box 231076, Dubai, UAE.
Trading in commodities and financial derivatives carries inherent risks, and the value of investments can fluctuate, potentially leading to losses that may exceed the initial investment. The commodities and financial derivatives markets are subject to rapid and unpredictable price changes due to various factors, including economic conditions, geopolitical events, and market sentiment. It is crucial to note that past performance is not indicative of future results, and AETRAM does not guarantee any profits or specific investment outcomes.
The information and materials provided by AETRAM are intended for educational and informational purposes only and should not be considered as financial advice. Before making any investment decisions, investors are strongly advised to seek independent professional advice. Clients of AETRAM must comply with the rules and regulations set forth by the DGCX, as failure to do so may result in disciplinary actions. By engaging in trading activities with AETRAM, investors acknowledge and accept the risks involved in trading commodities and financial derivatives. AETRAM shall not be held responsible for any losses incurred by investors, and investors trade at their own risk. It is of utmost importance for investors to thoroughly review and understand the terms and conditions provided by AETRAM and the DGCX before proceeding with any trading activities.
By accessing our website and using the information provided, you acknowledge that you have read and understood this disclaimer and agree to its terms. Trading in commodities and financial derivatives involves inherent risks, and you undertake any transactions at your own discretion and risk. AETRAM Trades DMCC shall not be liable for any losses or damages incurred from your use of the information provided on our website.** This website's information is not intended for use by anybody residing outside UAE or where such use would violate local laws or regulations.
Risk Disclaimer:
Trading Forex and Leveraged Financial Instruments carries a substantial risk and may result in the loss of your invested capital. Only invest funds you can afford to lose and ensure you thoroughly understand the risks involved. Trading leveraged products may not be suitable for all investors. Prior to trading, consider your level of experience, and investment objectives, and seek independent financial advice if needed. The Client is responsible for determining whether they are permitted to use AETRAM TRADES DMCC services based on legal requirements in their country of residence.
"AETRAM TRADES DMCC does not offer its services to residents of specific regions, including Afghanistan, Belgium, Bosnia & Herzegovina, Burundi, Eritrea, Gaza Strip, Haiti, Iran, Iraq, Japan, Lao, Libya, Myanmar, North Korea, Somalia, South Sudan, Sudan, Syria, USA, Venezuela, West Bank, and Yemen."
