How to express intent of taking actual delivery of USD and lock in attractive exchange rate by trading USD-INR futures?
You cannot. The currency F&O contracts are cash settled.
then how do importers exporters hedge their transactions ?
They take up FWD (forwards) and not futures.
That’s a part of interbank domain and not meant for speculation.
So . U mean to say that currency derivative fno trading is just gambling speculation ?
Ok . So . Importers exporters hedge the risk with forward contracts with the banks .
But . Then . How do the bank hedge their risk?
There is no such term called gambling in derivatives.
Speculation is a much more respectable term and I think you are making vague arguments for time-pass.
If you are serious, I am happy to answer the other question you have posted.
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The Banks hedge their risk by taking a position with their counter party i.e other banks world wide. This is the job of dealing room in treasury within a Bank. Forward contracts are well known to hedge currency risk for genuine traders. This takes away the currency fluctuations and the importer/exporter will know for sure the profit margin he is making out of a transaction. Within forward contracts you do have options as well i.e the willingness to accept the deal on the due date.
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Anything you do without knowing what you’re doing is gambling. 
You can use the forward market if you are in the import/export business or any other business that involves currency risk. The value and expiry of the forward OTC market can both be customized. Before you execute a trade in forward market, you must first submit the purpose, details, and necessary proofs for the trade.
Many banks and financial institutions that have received RBI approval will deal with forward markets.
Varsity and the NISM Currency Derivatives Workbook are good starting points for learning currency trading.
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Another simple example of how USD forward is used for NRI Retail customer is as follows:-
Many banks in India have something called “Forward USD Premium Product”.
Assume the standard vanilla NRE deposit for 5 years is 6.50% and FCNR deposit for USD is 2.75%
.
What the bank will offer is a “Forward product” the mechanism is as follows:-
- Customer can place deposits in INR or USD for tenor of 5 years
- If given in INR, this amount is converted by the Bank to USD and placed in FCNR deposit at 2.75%
- The Bank will enter into a forward contract to convert back the USD on maturity (after 5 years) to INR at say 90 Rs. (90 could be the forward rate of USD after 5 years as against 74 now)
- On maturity of the deposit, the USD deposit will be converted at the fixed forward rate at 90 irrespective of what rate exist then. Maturity proceeds is given in INR.
By doing this, the effective yield of the deposit will be around 8 to 8.5% which is much higher than the vanilla NRE deposit of 6.5%
This product is great for NRI who have NRE deposits in INR. Major disadvantage is if you close the FD prematurely, there will be a lot of unwinding cost involved in the forward contract.
This is an example of how forward contract works for retail customers as well.
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I like the USDINR futures because its done at central exchange. So one exchange across India. This is ideal because you get fair value.
Where as any contract with bank is over the counter so each bank will dictate their own exchange rate. And fees that goes along with it. So we as customer are helpless in this situation and maybe taken advantage of.
Are there any exchange places where retail customer has control over exchange rate? Ideally at central exchange NOT over the counter.