Currency is the lifeline of any economy in the world. Increase in export import
trade volume across the countries has lead to manifold increase in demand of currencies.
Currency segment has the highest traded volume across the segments in the world.
Anyone initiating an overseas deal is part of currency segment.
With such a huge volume currency segment becomes very interesting for trading as
well. All the currency contracts are available through NSE-CDS and BSE-CDS Exchanges.
One can work in currency through existing equity account, new account is not required.
Various currency contracts are available through derivative segment (F&O) namely
USDINR, EURINR, GBPINR, JPYINR, EURUSD, GBPUSD, USDJPY. Anyone involved in international
trade or services is exposed to foreign exchange risk; they can use currency trading
contracts for hedging the risk involved. For example, an exporter dealing in USD
has a risk from depreciating dollar so to hedge the risk exporter can sell the contract
of USDINR in currency trading market or vice-versa and cover the fluctuation in
currency market. Margins required in currency market are very low which makes it
even more attractive.