With the growing demand for more diverse and even exotic products brokers and exchanges worldwide compete on offering such trading options. We’ve already seen this with the Chinese currency and now Indian Rupee is also becoming a hot topic as well (you can read much more about the Indian retail forex market in the Q2 report).
Both China and India are extremely interesting and attractive countries for retail forex and forex trading in general and they are both restricting on how you can trade their local currency. This subsequently leads to creation of offshore markets and various non-spot trading offering such as the one below.
The Dubai Gold and Commodities Exchange (DGCX) is set to expand its Indian Rupee (INR) product offering with the launch of an INR Options Contract on September 26, 2011. The contract will be the only exchange-traded INR Options product offered to markets outside India.
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Eric Hasham, CEO of DGCX said: “The provision of an Indian Rupee Options contract will enable us to build on the exceptional volume growth achieved by our Indian Rupee futures contract over the last 12 months and meet member demand to further strengthen our INR offering”.
“DGCX has been working closely with its members and market participants to develop this additional risk management tool. The new options contract is the result of this interaction and feedback process. Our unique new Indian Rupee Options contracts will provide our members with more flexibility to hedge risk and trade in the Indian Rupee in a transparent, regulated and cleared trading environment,” the DGCX CEO further said.
Each DGCX Indian Rupee Options contract represents 2 million Rupees. Prices will be quoted in US Cents per 100 Indian Rupees, with a minimum premium fluctuation of 0.000001 US Dollars per Rupee ($2 per contract). At launch, the October 2011 expiry month will be available to trade.
DGCX will hold workshops on the INR Options contract prior to its launch on 26 September. The dates of these workshops will be announced in due course.