What are Currency derivatives and how can I trade them on Zerodha Kite?
Currency Derivatives are Futures and Options contracts that are traded on the Exchanges.
It is similar to the Stock Futures and Options but the underlying of the currency derivative contracts are currency pairs (i.e. USDINR, EURINR, JPYINR OR GBPINR) instead of stocks.
The currency derivatives segment of NSE provides trading in derivative instruments like Currency Futures and Options on 4 currency pairs, Cross Currency Futures & Options on 3 currency pairs and Interest Rate Futures & Options on Government Securities (G-Secs), 91-Day Treasury-Bills(T-bills), and Overnight MIBOR (ONMIBOR)"
To trade in currency derivatives on Kite, the currency derivatives segment should be enabled for your account.
If the currency segment is not enabled for your account, you can activate the segment by uploading your income proof. Click here to know the steps for activating the currency segment.
Once your segment is enabled, you can start trading in Futures and Options contracts of currency pairs by adding them to your watchlist.
To add these contracts to your Marketwatch, in the universal search on Kite, type out the name of the currency pair for eg. 'USDINR' and you’d be able to see all the contracts in the dropdown menu.
After you add the contract, hover over the contract to buy or sell the same.
Did you know? Currency derivative contracts are settled at the RBI reference rate.
Click here to know more about the currency derivatives on NSE.