Can we also take positions in cross currency options?
Answer
Answer
Of course you can! Currently, these contract options are yet to pick up on liquidity but that should happen over time. Like you can take positions across currencies through these cross currency swaps, you can also adopt the options route. Here are some of the key highlights…
Symbol
EURUSD
GBPUSD
USDJPY
Market Type
N
N
N
Instrument Type
OPTCUR
OPTCUR
OPTCUR
Option Type
Premium Style: European, Call & Put Options (CE/PE)
Unit of trading
1 contract unit denotes 1000 EURO.
1 contract unit denotes 1000 GBP.
1 contract unit denotes 1000 USD.
Underlying / Order Quotation
The contract would be quote in USD. The outstanding positions would be in EURO terms
The contract would be quote in USD. The outstanding positions would be in GBP terms
The contract would be quote in JPY. The outstanding positions would be in USD terms
Tick size
0.0001
0.0001
0.01
Trading hours
Monday to Friday 9:00 a.m. to 7:30 p.m. IST
Contract trading cycle
3 serial monthly contracts, followed by 3 quarterly contracts of the cycle March/June/September/December.
No. of Strikes
Minimum 12 In-the-money, Minimum 12 Out-of-the-money and 1 Near-the-money. (25 CE and 25 PE)
Strike price intervals
0.005
0.005
0.5
Expiry/Last trading day
Two working days prior to the last business day of the expiry month at 12:30 pm.
Quantity Freeze
10,001 or greater
Price operating range
Contract specific price range based on the delta of the option contract
Base price
Theoretical price on the 1st day of the contract. On all other days, DSP of the contract.
Position limits
Mode of settlement
Cash settled in Indian Rupees