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Community User Posted on 11:11am 23-Nov-2019

What are the different instruments available in the currency derivatives market in India?

Future and Options are commonly used currency instruments in Indian derivatives market. A future contract allows you to buy or sell an underlying asset at a present price for delivery on a future date.
 
Options are of two types - Call and Put. Call option gives a buyer the right but not the obligation to purchase an underlying asset at the specified strike price by paying a premium while Put gives the right but not the obligation to sell an underlying asset at a specified strike price by paying the premium.
Apart from Futures and Options, Currency Swaps and Currency Forwards are other derivatives instruments used in India.

You can Click Here to know more about Future and Click Here to know more about Options.
 
 
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