The Power Of Currency Trading

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Learn all about trading in currencies with this informational presentation that will not only give you interesting insights on the 'Power of Currency Trading', but will also tell you how you can make the most of trading in this amazing segment. To trade in currencies logon to https:/www.edelweiss.in/currency/

Text of The Power Of Currency Trading

Slide 1

Power of Currency Trading

Investment class to add in portfolio

Strictly Private and Confidential

ForeignExchangeMarkets

CommodityMarkets

EquityMarkets

Current scenario of International Financial Market

ForeignExchangeMarkets

CommodityMarkets

EquityMarkets

Current scenario of Indian Financial Market

Why Currency Trading?

Currency trading is basically trading in Derivatives.

Currency Derivatives are Futures and Options contracts

Underlying happens to be Currency Pairs instead of Stocks.

Currencies you can trade in

USDINR- US DollarEURINR- EuroGBPINR- PoundJPYINR- Yen

Factors affecting: Appreciation of INR

Events likely to impact USDINR rate

General trend for demand/supply of USD

Impact on USD

Impact on INR

Increase in exports of India

Excess inflow of USD in the country

Depreciates

Appreciates

RBI is selling USD to meet demand for the dollar

Supply of USDincreases

Depreciates

Appreciates

NRI Forex remittance is increasing

Increase in USD inflow

Depreciates

Appreciates

Positive tradebalance

Increase in USD inflow

Depreciates

Appreciates

Factors affecting: Depreciation of INR

Events likely to impact USDINR rate

General trend for demand/supply of USD

Impact on USD

Impact on INR

Increasein imports of India

Demand for USDincreases

Appreciates

Depreciates

Rise in global prices of commodities

Demand for USD rises dueto costlier imports

Appreciates

Depreciates

FIIsbuying back USD

Excessive USD outflow

Appreciates

Depreciates

RBI is buying USD to absorb excess USD due to Forex inflows

Absorption of excess USD liquidity

Appreciates

Depreciates

USD / INR relationship with Nifty (Inverse Relation)

USD/INR is inversely related to the markets (Sensex).When Sensex goes down, value of currency appreciates.

Source: Bloomberg Finance L.P.

Currency trading at Edelweiss Broking Limited:

Additional Investment/Trading opportunity

No documentation hassle*.

Extended trading hours- Monday to Friday, 9AM to 5PM

Lesser margin requirements as compared to trading in Equities.

Unlike Trading in Commodities, Trading in currencies F&O can be done on the same platform as Equities.

*The Trading account of client is opened after completion of documentary requirement with requisite form.

* Margin will not be less than that specified by SEBI/Exchanges

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Currency trading at Edelweiss... (contd)

Convenient and cheaper mode to hedge currency for importer and exporter

Price transparency- get live, market driven, real time quotes

Trade from anywhere, anytime

Specialized research through all mediums (Online, email, SMS)

Trade using Extreme, Website, Mobile App, Call and Trade

Contract Specifications for USD & EURO

USD/INR (monthly contract)Margin: 3%-4% (Approx) Rs. 1750CMP: Rs.55.64/- (1USD)Contract Value: Rs. 55,640/- (approx)Price Tick: Rs. 0.0025Expiry: 2 days prior to last working dayLot size: 1000 USD

EUR/INR (monthly contract)Margin: 3%-4% (Approx) Rs. 2065CMP: Rs.68.85/- (1USD)Contract Value: Rs.68,850/- (approx)Price Tick: Rs. 0.0025Expiry: 2 days prior to last working dayLot size: 1000 Euro

Source: www.nseindia.com

* Margin will not be less than that specified by SEBI/Exchanges

Contract Specifications for GBP and JPY

GBP/INR (monthly contract)Margin: 3%-4% (Approx) Rs. 2598CMP: Rs.86.58/- (1GBP)Contract Value: Rs. 86,580/- (approx)Price Tick: Rs. 0.0025Expiry: 2 days prior to last working dayLot size: 1000 GBP

JPY/INR (monthly contract)Margin: 3%-4% (Approx) Rs. 2130CMP: Rs.71/- (100JPY)Contract Value: Rs. 71,000/- (approx)Price Tick: Rs. 0.0025Expiry: 2 days prior to last working dayLot size: 1,00,000

Source: www.nseindia.com

* Margin will not be less than that specified by SEBI/Exchanges

How to place a trade?

Strictly Private and Confidential

To trade on Website

Click on Currency on the trade pageSelect Buy/SellSelect instrument type Select the currency you wish to trade in from symbolEnter details like price, quantity, stop loss and complete the order

Click on Buy/Sell to complete the order

Click on Get Quote to check the price

To trade on Xtreme

To get the place order screen, press F1 to Buy F2 to SellSelect Exchange Segment as CDS, enter price, quantity ,order type, select expiry date and submit to complete the order.Alternatively, Select Exchange Segment as CDS, select order type, currency pair expiry date to add top market watch and trade

To trade on Mobile

Download & Install the mobile application from the apps store by searching Edelweiss Mobile Trader

Login to the app

Click on the Trade icon

Select Exchange Segment as CDS, enter price, quantity , order type, select expiry date and submit to complete the order.

Services on offer

Dedicated Research: Currencies Research desk, covering all verticals

Multiple Exchange Coverage: MCS-SX/ NSE- CDS

Multiple limit Platforms: Fungible limit on stock holdings You can allocate the funds you hold in equities across the currency segment too. Standard Cash Limits

Intraday Leverage: Option to carry forward intraday positions subject to margin availability

Trade Online: Omnesys terminal provided free of charge

View Positions: Back office login provided to all clients

Charges: Low transaction charges/Competitive brokerageSubscription plans

Services on offer

Research from Edelweiss

Product

Description

Risk

Indicative Potential Upside

EDEL EXPRESS

Currency

6-8 bps

12-16 bps per call

EDEL MAXIMA

Currency

30 bps

50 bps per call

FAQs

Daily Margin requirement: One time initial margin and mark to market on daily basis as per exchange norms

Interest on initial deposit: No

Mode of payment: Bank Guarantee/Cheque/FD/NEFT/RTGS

Product Cycle: 12 month maturity contract is available with every month expiry

Facility to roll over the position for the next contract

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Disclaimer

Broking services offered by Edelweiss Broking Limited under SEBI Registration No.:INB/INF/INE231311631 (NSE) and INB/INF011311637 (BSE) and INB/INF/INE261311634 (MCX-SX); Corporate Office: Edelweiss House, Off CST Road, Kalina, Mumbai - 400098; Tel. (022) 4009 4400Edelweiss Broking Ltd. also acts in the capacity of the distributor for products such as IPO and Mutual Funds etc..Mutual Fund Investments are subject to market risks. Please read all scheme related documents carefully before investing.DisclaimerThis presentation is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this presentation should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this presentation (including the merits and risks involved), and should consult his own advisors to determine the merits and risks of such investment. The investment discussed or views expressed may not be suitable for all investors. The information contained herein is from publicly available data or other sources believed to be reliable, but we do not represent that it is accurate or complete and it should not be relied on as such. Edelweiss Web Services Ltd. (Edelweiss) or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information. We and our affiliates, group companies, officers, directors, and employees may have long or short positions in the securities of company (ies) mentioned herein or have other potential conflict of interest with respect to any recommendation and related information and opinions. The views expressed in this document / article / interview reflect the personal views of the author and not that of Edelweiss. Past performance is not necessarily a guide to future performance. The data contained in this presentation is only indicative / illustrative.This information is subject to change without any prior notice. Edelweiss reserves the right to make modifications and alterations to this statement as may be required from time to time. However, Edelweiss is under no obligation to

Disclaimer

update or keep the information current.Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see section titled Risk Factors of the Red Herring Prospectus. Before opening any attachments please check them for viruses and defects. This service / information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose unless otherwise expressly authorised. This service / information is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distrib