Indian Rupee – Options contracts is an logical extension of the of the Indian Rupee Futures. The options contracts allow market participants to hedge their Indian Rupee exposures using various option strategies as well as a combination of futures and options.
Dubai Gold and Commodities Exchange is the first exchange offshore to offer option contracts. Options allow participants to take a call on the underlying Indian Rupee by paying a small premium, while the option writer can benefit by taking a view on the underlying volatility of the Indian Rupee.
- Hedging window available long after Indian currency markets close
- Arbitrage opportunity with USD-INR options available in offshore
- Two months option contracts are available
- Strikes are available 2.50 Indian Rupees from the at the money strike
- There is no margin applicable to the buyer of an option
- Unique trading opportunity for Indians in the region and international funds with exposure to India to manage their risk
- Options are most leveraged of all financial instruments and various strategies can be built to manage risk in the most cost effective manner for example straddles, strangles , ladders and butterflies
- UAE is a Tax Free jurisdiction ensuring no tax liability arising out of accrued profit
- Market hours from 8.30 AM India time till 1.25 AM India time
- Overlaps most trading zones including Europe and United States