InvestorQ : Can we also take positions in cross currency options?
Crowny Pinto made post

Can we also take positions in cross currency options?

Answer
image
3 years ago
Follow

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

0 Views