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.
= 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.
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
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.
= (sold price - bought price) * lot size
= (55.8975-55.1025) * 1000
= (.7950) * 1000
= 795 Rupees
Or you can calculate this in another way.
Sample NSE CURRENCY REPORT:
= ((sold price - bought price) / Tick Size ) * Price Movement
= ((55.8975-55.1025) / .0025) * 2.5
= (.7950 /.0025) * 2.5
= 795 Rupees
The following NSE CURRENCY REPORT has been taken on 22 nd March 2013 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 27-Mar-13, 26-Apr-13, 29-May-13, 26-Jun-13, 29-Jul-13, 28-Aug-13, 26-Sep-13, 29-Oct-13, 27-Nov-13, 27-Dec-13, 29-Jan-14, and 26-Feb-14
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