Currency Trading
Understanding Lot Size, Tick Size, Margin for USDINR, JPYINR, GBPINR, EURINR in MCX-SX and NSE:
In India, NSE and MCX-SX are the currency exchanges, which provide:
Futures trading on the currency pairs USDINR, EURINR, GBPINR, and JPYINR
Options trading on USDINR NOW.
Our main focus on this page is to make you understand about Lot Size, Tick Size and Margin needed to trade on USDINR, EURINR, GBPINR and JPYINR. Lot Size (1000) is same for all above mentioned currency pairs. Tick Size (.0025 paisa) is same for all above mentioned currency pairs.
Lot size = 1000 (i.e.) when you buy 1 contract then lot size is 1000
Tick Size =.0025 paisa
Since Lot size is 1000 and for each movement of .0025 tick size, you will be either Gaining or Losing 2.50 Rupees.
Price Movement
= Lot size * Tick Size
= 1000 * .0025
= 2.5 Rupee
(i.e.) 1 movement of Tick Price will be 2.5 Rupees.
So there will be 400 (1 Rupee/.0025) tick price movements within a Rupee.
Note: If you want to trade on currency futures, brokers may be charging 3% to 5% margin amount, which is based on the lot size and settlement price of the symbol.
Margin Example:
We will assume that current prices of USDINR, EURINR, GBPINR, and JPYINR are 55, 70, 80 and 60 rupees respectively. So the margin amount needed to buy 1 contract:
Formula = current price of currency pair * LOT SIZE * 3%
Margin needed for USDINR = 55*1000*.03= 1650 Rupees
Margin needed for JPYINR=60*1000*.03=1800 Rupees
Margin needed for EURINR=70*1000*.03=2100 Rupees
Margin needed for GBPINR=80*1000*.03=2400 Rupees
Example:
SYMBOL=USDINR; BOUGHT PRICE= 55.1025; LOT SIZE = 1000; TICK SIZE = .0025; SOLD PRICE = 55.8975.
Your margin may be around 1650 rupees and you buy 1 lot of USDINR at 55.1025 and you sell it for 55.8975.
Gross Profit
= (sold price - bought price) * lot size
= (55.8975-55.1025) * 1000
= (.7950) * 1000
= 795 Rupees
Or you can calculate this in another way.
= ((sold price - bought price) / Tick Size ) * Price Movement
= ((55.8975-55.1025) / .0025) * 2.5
= (.7950 /.0025) * 2.5
= 795 Rupees
Sample NSE CURRENCY REPORT:
DATE INSTRUMENT UNDERLYING EXPIRY DATE MTM SETTLEMENT PRICE
09-Jul-14 FUTCUR EURINR 28-Jul-14 81.6575
09-Jul-14 FUTCUR EURINR 26-Aug-14 82.0875
09-Jul-14 FUTCUR EURINR 26-Sep-14 82.56
09-Jul-14 FUTCUR EURINR 29-Oct-14 83.495
09-Jul-14 FUTCUR EURINR 26-Nov-14 84.1025
09-Jul-14 FUTCUR EURINR 29-Dec-14 84.775
09-Jul-14 FUTCUR EURINR 28-Jan-15 85.3925
09-Jul-14 FUTCUR EURINR 25-Feb-15 85.8875
09-Jul-14 FUTCUR EURINR 27-Mar-15 86.5
09-Jul-14 FUTCUR EURINR 28-Apr-15 87.16
09-Jul-14 FUTCUR EURINR 27-May-15 87.7625
09-Jul-14 FUTCUR EURINR 26-Jun-15 88.39
09-Jul-14 FUTCUR GBPINR 28-Jul-14 102.6725
09-Jul-14 FUTCUR GBPINR 26-Aug-14 103.17
09-Jul-14 FUTCUR GBPINR 26-Sep-14 103.72
09-Jul-14 FUTCUR GBPINR 29-Oct-14 104.25
09-Jul-14 FUTCUR GBPINR 26-Nov-14 105.5975
09-Jul-14 FUTCUR GBPINR 29-Dec-14 105.3
09-Jul-14 FUTCUR GBPINR 28-Jan-15 107.1375
09-Jul-14 FUTCUR GBPINR 25-Feb-15 107.5925
09-Jul-14 FUTCUR GBPINR 27-Mar-15 108.305
09-Jul-14 FUTCUR GBPINR 28-Apr-15 109.07
09-Jul-14 FUTCUR GBPINR 27-May-15 109.77
09-Jul-14 FUTCUR GBPINR 26-Jun-15 110.4975
09-Jul-14 FUTCUR JPYINR 28-Jul-14 59.0625
09-Jul-14 FUTCUR JPYINR 26-Aug-14 59.385
09-Jul-14 FUTCUR JPYINR 26-Sep-14 59.885
09-Jul-14 FUTCUR JPYINR 29-Oct-14 60.36
09-Jul-14 FUTCUR JPYINR 26-Nov-14 60.8125
09-Jul-14 FUTCUR JPYINR 29-Dec-14 61.305
09-Jul-14 FUTCUR JPYINR 28-Jan-15 61.755
09-Jul-14 FUTCUR JPYINR 25-Feb-15 62.12
09-Jul-14 FUTCUR JPYINR 27-Mar-15 62.57
09-Jul-14 FUTCUR JPYINR 28-Apr-15 63.0525
09-Jul-14 FUTCUR JPYINR 27-May-15 63.4925
09-Jul-14 FUTCUR JPYINR 26-Jun-15 63.9525
09-Jul-14 FUTCUR USDINR 28-Jul-14 60.03
09-Jul-14 FUTCUR USDINR 26-Aug-14 60.3725
09-Jul-14 FUTCUR USDINR 26-Sep-14 60.765
09-Jul-14 FUTCUR USDINR 29-Oct-14 61.1625
09-Jul-14 FUTCUR USDINR 26-Nov-14 61.5525
09-Jul-14 FUTCUR USDINR 29-Dec-14 61.965
09-Jul-14 FUTCUR USDINR 28-Jan-15 62.4
09-Jul-14 FUTCUR USDINR 25-Feb-15 62.55
09-Jul-14 FUTCUR USDINR 27-Mar-15 63.1
09-Jul-14 FUTCUR USDINR 28-Apr-15 64.0125
09-Jul-14 FUTCUR USDINR 27-May-15 64
09-Jul-14 FUTCUR USDINR 26-Jun-15 64.465
09-Jul-14 OPTCUR USDINR 59.77
The following NSE CURRENCY REPORT has been taken on 09th July 2014 from www.nseindia.com.
This table is a sample which explains the different underlying, their contract cycles and price movements.
Explanation for the Headers in the above Table:
Date: Date on which Instrument traded
Instrument: You can see Instruments FUTCUR for FUTURES CURRENCY and OPTCUR for OPTIONS.
Underlying: You can see EURINR, GBPINR, JPYINR, and USDINR. i.e. Euro, Pound, Yen and USD are traded with INR.
Expiry Date: The date when the future contract or option contract expires.
MTM Settlement PRICE: Settlement price of EURINR, GBPINR, JPYINR, and USDINR.
Contract Trading Cycle: 12 months trading cycle.
Example: USDINR: you can see 12 contracts expiring on various Months