tag:blogger.com,1999:blog-19649274.post8036734919231593847..comments2024-03-29T12:03:50.891+05:30Comments on The Leap Blog: Currency futures: An example of how India changesAjay Shahhttp://www.blogger.com/profile/03835842741008200034noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-19649274.post-29777158449379142252010-04-27T11:30:46.231+05:302010-04-27T11:30:46.231+05:30Can you please help me in figuring out how a retai...Can you please help me in figuring out how a retail investor can buy 10 year G secs in a simple way.Ravinoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-64842496760518627362010-04-23T11:40:23.912+05:302010-04-23T11:40:23.912+05:30Ajay,
There are many weird things about currency...Ajay, <br /><br />There are many weird things about currency futures that you should discuss.<br /><br />1. Customers of the OTC market have to demonstrate exposure, customers of the exchange do not.<br /><br />2. But the rules are stacked against corporate customers of the exchange because of the tiny position limit.<br /><br />3. Exchange members have an incentive to do more on currency instead of Nifty because of zero STT and zero transactions charge.<br /><br />4. One exchange is doing circular trading to show that it has high volume and sucker the investors.<br /><br />5. The banks of south Bombay are mostly sitting tight and ignoring this market.<br /><br />6. A major player - USE - will now come into the game and that will change things.<br /><br />So while something remarkable has happened (currency impact cost better than nifty impact cost) it has come about under weird circumstances. For example, it does not teach us how to make the interest rate futures market work. And in the future, when some of the six weird aspects change, the relative ranking by liquidity of nifty and currency could change.Anonymousnoreply@blogger.com