SBI FX TRADE is an online platform offered by State Bank of India to its customers to trade in the exchange traded Currency Futures. SBI FX TRADE is a secure, robust online platform linked to the customer's Bank account. The customer can take positions in these currencies from anywhere across the country, after transferring the required margins, through his online trading account.

A currency futures contract is a standardized form of a forward contract that is traded on an exchange. It's an agreement to buy or sell a specified quantity of an underlying currency on a specified date at a specified price. Settlement for the customer is, however, done in Rupee terms and not in the foreign currency.

On the lines similar to equities, depending upon the perception of increase or decrease in value, the customer has to crystallize his views on the expected movement in the value of respective currencies.

Customers can then buy or sell the currencies accordingly on the currency futures trading platform. Lien marking is a unique facility offered by SBI for its clients. Through the lien marking facility offered by SBI, the client continues to receive interest on the lien amount till the actual deals are done. In the case where the margins are transferred upfront, the client looses the opportunity to earn interest till the deals are done.

Upon execution of the deal on the exchange, the lien amount is reduced and the debit entry is passed in the client's account at the End of the day. The spread positions require lower margins specified by the Exchange, and the benefit of the lower margins, if any, would be passed on to the client. Exchange would automatically square off your position on the last day of the contract expiry. Your position would be closed at the final settlement price as per the current regulations.

The Final Settlement price shall be the Reserve Bank Reference Rate on the last trading day. The client can request for unmark of the lien at any time. The following has to be noted in this regard. We offer volume based incremental brokerage rates to suit various segments of the customers. Our brokerage rates are straight forward and don't carry any hidden charges. About The Product SBI FX TRADE is an online platform offered by State Bank of India to its customers to trade in the exchange traded Currency Futures.

Features of SBI FX Trade Competitive brokerage rates. Integrated platform of Bank Account and Online Trading Account.

Provision for lien marking. The money continues to remain in the customer's account until the deal is done, thus earning him interest. Secure and Robust online platform. Product from India's most trusted and transparent Bank.

What is Currency Futures? Last working day of the month How to Trade in Currency Futures Using SBI FX Trade? Opening SBI FX Trade Account Customers who are interested in participating in currency futures market have to necessarily open a SBI FX Trade trading account.

Currently, SBI offers the trading facility with National Stock Exchange of India NSE. The client can open the SBI FX Trade account at selected branches after completing the necessary KYC documentation specified by the Regulators SEBI and RBI. After completion of the KYC documentation, the trading account of the client would be opened within a few days and an email would be sent to the client with the user name and password. To trade in a currency futures contract, the client needs to give the required margins upfront to the Bank.

For example if a client buys a near month contract at Rs. Thereafter, he will be redirected to a login page, where he has to enter the required details and log in. Alternatively the client can also try the URL: The updated lien amount can be seen on the onlinesbi homepage.

Placing the Trade On the lines similar to equities, depending upon the perception of increase or decrease in value, the customer has to crystallize his views on the expected movement in the value of respective currencies. Contrarily, he can 'sell' the contract if he sees appreciation of the Indian Rupee. For example, if the Rupee one month is trading at Rs. He makes a gain of Rs.

In case Rupee moves against his expectations and reaches Rs. The customer can square off his positions at any time during the period of the contract. Benifits of Trading in Currency Futures A wide range of financial market participants -hedgers i.

This product offers the platform for hedging against the effects of unfavourable fluctuations in foreign exchange rates. If you are an importer you can 'buy' a currency futures contract to "lock in" a price for your purchase of actual foreign currency at a future date. Thus you avoid the exchange rate risk that you would have otherwise faced.

If you currency exchange ottawa bank of canada an exporter, you can 'sell' currency futures on the exchange platform and lock in a sale price at a future date.

You have an export receivable after two months and you find the current level very attractive. Then you can 'sell' a two months currency futures contract at the current price of Rs. Ways to make money gambling at the end of two months you get Rs. All those interested in taking a view on appreciation or depreciation of exchange rates in the short and medium term, can participate in the currency futures market.

As per the Regulatory guidelines, all 'Resident Indians' including individuals, fxy options or financial institutions are allowed to participate in currency futures market. However, at present Non Resident Indians NRIs and Foreign Institutional Investors FIIs are not allowed to participate in currency futures market.

FAQs on Currency Futures Where can I get the information about placing trades using the SBI FX Trade platform? The presentation about using the platform to place trades would be sent to the client via email after the opening of the SBI FX Trade account.

The presentation would also be available on retail. Contact List of Regional Treasury Marketing Units S. No RTMU Addresses Phone No. The SBI FX Trade KYC booklet contains six documents specified by the market regulators, Exchange and the Bank.

The KYC form collects the details of the customer, which would be kept confidential by the Bank. The Proven swing trading strategies Rights and Obligations document specifies the right and duties earnest money transfer form for sale by owner the client who wishes to open a currency futures trading account.

Risk disclosure document explains the various kinds of risks associated with the exchange traded currency futures market. Member-client agreement is executed between customer and the trading member SBI for participating in the exchange traded currency futures market. This agreement has to be stamped as per the applicable stamp act, the cost of which will be borne by the client. The agreement for sending the contract notes electronically enables the clients to receive the contract notes and other statements electronically.

What is lien marking and how is it different from normal upfront transfer? How can I see the lien marked status and the updated trading limits? When the client marks a lien for placing the trades, the lien status is updated on a real time basis in the onlinesbi homepage of the client.

The client can also see the updated limits on the www. How is margin calculated on open position? For example, you have an open buy position in FUT-USDINRAug for 1 lot of qty Rs. Calendar spread means risk off-setting positions in contracts expiring on different dates in the same underlying taken simultaneously.

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For example, you take 'Buy' position for 2 sbi forex buying and selling rates of qty in FUT-USDINRAug Rs. Then 1 lot Buy position metatrader australian stocks FUT-USDINRAug and 1 lot Sell position in FUT-USDINRSep form a spread against each other and hence are called "Spread Position".

In this example, the balance 1 lot of qty buy position in FUT-USDINRAug would be non-spread position and would attract initial margin. How is the margin calculation done in case of calendar spread? How can I view my open positions in Currency Futures? In addition, contract notes and daily statements will be sent to you according to the regulatory guidelines.

Can I do anything to safeguard the positions from being squared off on account of margin shortfall? Yes, you can always voluntarily add Margin at the time of placing orders or allocate additional margin at any time.

Having adequate margins can avoid calls for any additional margin in case the market turns unfavorably volatile with respect to your position. Intra Day Trigger Points The client would receive the alerts at the following levels, for topping up his margin account. No Trigger Point Action Taken 1.

It's always advisable for the clients to keep an additional cushion over the required margin to reduce the possibility of such a square off, on account of extreme market movements.

If the client fails to top up at this level too, the Bank reserves the right to square off the positions of the client. What is meant by EOD MTM End of Day - Mark to Market process? Daily EOD MTM is a mandatory feature of Currency futures Settlement Process, mandated by the regulators. Every day the settlement of open Currency futures position takes place at the Settlement Price declared by the exchanges for that day.

The Base price is compared with the Settlement price and difference is cash settled. The position is carried forward to the Next day at the previous trading day's Settlement price at which last EOD MTM was run.

What are my settlement obligations in currency futures? You can have following two Settlement obligations in Currency futures market: PayIn due to Brokerage and statutory levies on close out PayIn due to applicable Taxes Is it compulsory to square off the position within the life of contract? When is the obligation amount debited or credited in my bank account?

Daily Settlement Obligations at Bank: This means that any daily obligation arising out of transactions in futures or EOD MTM on day T is settled on the immediate next trading day.

This further means that if you have a debit obligation on day Tthe payment will have to be made on day T itself. Final Settlement Obligations at Bank: How can I unmark the lien and release the amount?

For unmarking the lien, client should go to the REQUESTS page on his onlinesbi home page and choose SBI FX TRADE and enter the amount to be unmarked. The unmark requests placed before 5 PM, would be unmarked during the same day, after the market hours.

The requests placed after 5 PM would be processed only at the end of next day's trading hours. Therefore the client is expected not to use the amount, for which the unmark request was made, till the lien is released. In case the client uses this amount on the next trading day, the unmark request would be rejected.

Similar to the case of lien marking, when an unmark lien is undertaken; no entry would be passed in the account of the client.

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Only the lien amount would be reduced by the unmarked amount. What are the applicable brokerage rates for SBI FX TRADE? All the customers would be initially assigned to one of the slab on the basis of the expected volume from the customer at the time of opening the account. The actual performance of the customer would be verified against the category volumes at regular intervals and the brokerage category would be modified accordingly.

Applicable taxes would be charged to the customer. The above rates can be changed anytime at the discretion of the Bank. The client has to bear the applicable charges for stamping the Member-Client Agreement. Account opening charges and annual maintenance charges are waived for the first year.