Currency trade to benefit large spectrum of society: NSE

Subscribe to Oneindia News

Bangalore, Oct 6 (UNI) The trade on currency futures, now allowed to be done on stock exchange platforms, could benefit a large universe of participants from corporates and individual investors, according to an NSE official.

Speaking at an awareness session on exchange traded currency derivatives market organised by the CII, National Stock Exchange Senior Vice President R Sundararaman said in today's globalised and integrated business environment many entities, irrespective of the nature of its business, were impacted by currency risk either directly or indirectly.

''Exchange traded currency derivatives market provides excellent opportunity to hedge currency risk for different kinds of participants. The nation-wide trading facility with the backbone of rugged clearing mechanism, would therefore be found beneficial by various participants,'' he said.

Currency exposure could happen to anybody and hedging against future risks could work to one's advantage. The latest decision of the government would enable multiple hedging opportunities for individuals.

A person could hedge on a currency for future medical treatment of a kin abroad or reduce one's risk while receiving the periodical remittances from abroad or even for the individual who paid in foreign currency for his kin's education abroad, he said.

The latest decision had opened an avenue to all business people to deal in currencies. Using the exchange could bring cost advantages while being highly effective.

The three top exchanges in the country had jumped into the bandwagon of currency trade and NSE, which is the largest stock exchange using online trading, could offer maximum benefits to currency traders, Mr Sundararaman claimed.

UNI RS SJ 1945

Please Wait while comments are loading...