View all categories

What are interest rate derivatives?

The Currency Derivatives Segment (CDS) should be enabled for the Zerodha account to trade interest rate derivatives on Kite. To learn more, see How to activate F&O?

Interest rate derivatives are F&O contracts traded on exchanges, and their value is derived from interest rates or the prices of interest-rate securities. In the Indian context, interest rate derivatives are based on the interest rates on money, interbank money rates, and largely bonds, where the underlying interest rate is based on a particular debt security. All the Interest rate derivative contracts are cash-settled, and settlement depends on the type of contract that is being traded.

Currency F&O can be traded by adding them to the marketwatch on Kite. To add these contracts, type interest rate series in the universal search bar to see the interest rate contract in the drop-down, and select and add the contract that is to be traded. To learn more about interest rate series, see How to interpret SDL, T-bill, and G-secs names or symbols?

Hover over the contract to be traded and click or tap on Buy or Sell to place an order.