Can Indians trade non INR currency pairs?

General
1

If indian resident want to trade non INR currency pairs can they do it legally?
If yes how.

2

SEBI Allows Cross currency pair trading in 3 Pairs
GBPUSD, USDJPY, EURUSD.
That’s what i know but haven’t seen any broker providing these pairs.
Would like to know more from you guys @nithin @ShubhS9 @Meher_Smaran @Bhuvan

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3

Is there any other legal route to trade those currency pairs like incorporating a firm in some other country? But even in that case I think fund would be transferred from India to offshore account for purpose of trading non INR currency pairs and would violate FEMA.

4

You can legally trade via a broker in all NSE listed currency pairs including cross currency pairs.

https://www1.nseindia.com/products/content/derivatives/currency/cd.htm#:~:text=Currency%20Derivatives%20are%20available%20on,trading%20in%20Currency%20Derivatives%20segment.

If there is a broker imposing restrictions discretionary or otherwise that is a localised broker problem. Just switch to another broker where there is more freedom.

5

@t7support Do you do it? If yes then which broker? How’s the liquidity?

6

Nope. I don’t trade in currency segment yet.

I trade with Dhan and they have the nse listed currency pairs.

Please let me know which currency pair(s) you are interested and I can share more details.

7

Suppose you want to sell EURUSD.

Sell EURINR.
Buy USDINR.

That’s it.

Doing it since half decade now.

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8

The non inr pairs that’s allowed by NSE since they are not avialable at zerodha
EURUSD, GBPUSD, USDJPY

9

No liquidity in options. Liquidity is very low in futures for all cross currency pairs.

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10

I see however these are supposed to be most liquid of all Forex Pairs primarily the Cable (GBPUSD) when international volumes are also taken into consideration …
Don’t understand how it works?

11

Depending on exchange volumes could vary. For instance volumes on mcx for commodities is no where near international commodity volume.

Also I wonder if brokers block clients from trading these currency pairs how will these currency pairs ever be liquid at NSE… :thinking:

12

GBPUSD.

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But GBPINR? Lol.
How a forex trader in the UK is feeling about GBPINR? The same thing you feel about Somalian currencies.

Only corporates use it. Like If you order a machine from the UK and paid in GBP and You want to hedge it for volatility. In those cases.