Glossary Background

Forex Futures Trading

Forex futures trading involves buying and selling standardized futures contracts for currency pairs on exchanges like NSE, BSE, and MSE in India, operating from 9:00 AM to 5:00 PM. These contracts obligate the holder to buy or sell a currency pair at a set price and date. Key components include the forex pair (currencies traded), lot size (contract value), contract price (futures price), spot price (current rate), margin (deposit required), tick size (minimum price move, Rs. 0.0025 in India), and expiration date. In India, forex futures are cash-settled in INR, with no physical delivery of the base currency.