Getting return of 3 years long struggle in form of nod to launch a stock trading for equities, equity futures, interest rate futures and wholesale debt products, there is a cheering moment for MCX Stock Exchange (MCX-SX), also win nod for Currency Options.
After announcing approval to launch for currency option on trading platform from SEBI and RBI, MCX-SX , controlled by country’s biggest commodity bourse, Multi Commodity Exchange will enable in CDS currency derivatives segment.
To trading in exchange of currency in the dollar-rupee pair, the bourse will get multi offers to expand trading platform, allowing to offer its currency traders a large product- both complementary as well as a hedging- against foreign currency positions.
In a release MCX-SX said it had a successful mock trading session on Saturday and will soon announce the date of live trading of currency options.
Currency Options are just like contracts that allow buyers a right of the option to buy- sell specified currency, not with any obligation, at a specified exchange rate during a specified period. And for this norm is that buyers have to pay premium to the seller of the option.