Sbi forex procedure

FX-Retail - An electronic trading platform for buying or selling foreign exchange by retail customers of Banks A trading platform is expected to provide the.
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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. Customers who are interested in participating in currency futures market have to necessarily open a SBI FX Trade trading account. Upon receipt of the KYC compliant applicant form, the trading account of the client would be opened and an email would be sent to the client with the user name and password.

To trade in currency futures, the client needs to give the required margins upfront to the Bank. For example if a client buys a near month contract at Rs. STEP 3: 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.

Customers can then buy or sell the currencies accordingly on the currency futures trading platform. Example B: Contrarily, he can sell the contract if he sees appreciation of the Indian Rupee.

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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. Hedgers: This product offers the platform for hedging against the effects of unfavorable 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 are 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. So at the end of two months you get Rs. Investors : 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.

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As per the Regulatory guidelines, all Resident Indians including individuals, companies or financial institutions are allowed to participate in currency futures market. In case of any other query, the client can write to. The KYC form collects the details of the customer, which would be kept confidential by the Bank. Account Opening Form captures the details for the trading account and of the bank account to which the trading account is to be linked to.

The Investor Rights and Obligations document specifies the right and duties of 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. Guidance note details various do's and don'ts while trading on exchange.

Policies and Procedures document details the policies set by SBI and the procedures it will follow pertaining to client's trading account. Tariff sheet specifies the various brokerage slabs in which the client can be classified into based on his monthly volumes. Personal Loans. Personal Loan on Credit Card. Flexicash Overdraft Against Salary. Business Loan. Home loan.


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