When the underlying is an exchange rate, the contract is termed a "currency futures contract". In other words, it is a contract to exchange one currency for another currency at a specified date and a specified rate in the future. Being one of the early entrants into the Equity and Derivative Segments, MODEX has also obtained the membership in Currency Futures to offer new asset class for its customers. MODEX offers trading in the Currency Derivatives Segment in NSE, BSE and MCX-SX.
What is new with MODEX Currency Derivative services?
Our expertise, effective guidance and very competitive fees will ensure your enjoyment of a hassle free online currency derivatives trading experience.
Firstly, backed by our 4 years of expertise in online trading, we provide advanced online Currency Derivatives facilities in a simple way that is convenient to use.
Secondly, with effective guidance by our exclusive research team our clients would be able to trade intelligently thereby making MODEX towering heights in this market segment.
MODEX Provide Currency derivatives trading system of NSE, called NEAT-CDS.
(National Exchange for Automated Trading, BOLT PLUS (BSE) – Currency Derivatives Segment) trading system, provides a fully automated screen-based trading for currency futures on a nationwide basis as well as an online monitoring and surveillance mechanism. Two products, currency futures and interest rate futures trade on this segment.
All quantity fields are in contracts and price in Indian rupees. The exchange notifies the contract size and tick size for each of the contracts traded on this segment from time to time. Currency futures contracts are cash settled, i.e. through exchange of cash in Indian Rupees. The settlement amount for a clearing member is netted across all their TMs/clients, with respect to their obligations on MTM settlement.
INTEREST RATE FUTURES
An Interest Rate Futures contract is "an agreement to buy or sell a debt instrument at a specified future date at a price that is fixed today." The underlying security for Interest Rate Futures is either Government Bond or T-Bill. Exchange traded Interest Rate Futures on exchange are standardized contracts based on 10-Year Government of India Security (NBF II) and 91-day Government of India Treasury Bill (91DTB). All futures contracts available for trading on NSE are cash settled.
Interest rate futures can be based on underlying instruments such as:
Treasury Bills in the case of Treasury Bill Futures traded on the CME
Treasury Bonds in the case of Treasury Bond Futures traded on the CBT
Other products such as CDs, Treasury Notes and Ginnie Mae's are also available to trade as underlying assets in an interest rate future
MODEX provide NSE's and BSE’s (Bolt Plus) automated screen based trading, modern, fully computerized trading system designed to offer investors across the length and breadth of the country a safe and easy way to invest.