Cross currency trading

Why is zerodha still not allowing cross currency trading? I am not able to place a trade on cross currency pairs.

true… it is under process… yesterday i tried to contact them about this too… brokerage calculator for cross currency is not updated yet

Yes that’s what they told me too. But how long will it take? Can someone from zerodha please clarify this? @nithin @Bhuvanesh @BharatW @Karthik

@aniketchatterjee this will take us a few more weeks. Cross currency pairs bring in a change in how our backend needs to work. For example with a EURUSD contract, the losses or profits happens in USD. Now this USD has to be in turn converted into Rupees for doing all MTM. This is a little tricky, especially considering we haven’t had any such contract till date.

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All right, thanks for the reply

@nithin no problem sir… take as much time as possible… client safety first

Hi Nithin,

It’s been high time, you give us the option of

  1. Cross Currency trading
  2. Direct currency spread contracts

in KITE

Globally currency trading is much bigger than Equity. I wish you don’t waste further time on this making available to us.

With cross currency there is an issue with how exchanges currently MTM the positions. They do it based on reference rate (declared by RBI in the afternoon), but the real MTM is based on closing rate.

Just to explain, if you hold EURUSD, the MTM for this contract is in USD. This has to be applied as INR to the trading account. So ideally this has to happen at end of the day USDINR rate, but currently happens at 12 noon price. This is a potential issue, especially if USDINR has any wild swing post noon.

This is on our list of things to do, but will take some more time, till we get some clarity on the issue.

Hi Nithin,

I understand your issue. But you can selectively make it available to your low risk customers to start with till you get clarity on how to manage MTM calculation.
It is very very unfair to deny this to your genuine customers. Today all the 4 pairs are linked to INR in which one is carrying very high INR risk. I am an active currency trader(still it is relatively low comparing to my equity holding portfolio. I want to quickly diversify my currency risk from INR.

Please Please make cross currency available to me. If you want, you can take a declaration from me to make good for any MTM losses arising on account of this… To start with you can do a risk profiling and allow me…

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This is tough. Btw, have you checked how much trading is happening on these contracts? Just 250 trades on entire EURUSD contract. There isn’t any liquidity at all.

Hi Nithin,

I know this liquidity position. But what to do… We have to start somewhere. Today except equity large cap, you don’t find liquidity in small cap, bonds, etfs etc. As many say, Indian markets are shallow. But these will take time slowly.

As the biggest retail brokerage, you should take lead in offering these diversification tools to Indian public. It will certainly take time. But it will take off.

Yes, as informed above it is in our list of things to provide but waiting for some clarity.Will take sometime.

@nithin,

Hi Siva, Nithin,

Any update on when you will start cross currency futures on Kite?

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@nithin
Yes, please. If the regulations and settlement can be sorted out, and the largest broker starts this feature, it might take off and more people might start trading in these cross currency derivatives, which can increase liquidity maybe.

Yes, in our list of things to do.

Please let us know if cross currency trading already avaliable. At least for eight major currency pairs to trade anyway. How does that sounds to you ?:wink: I haven’t checked yet, but just have seen what people wrote here for that matter anyway;) Looking forward for that.

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Please let us know if cross currency trading already avaliable

Does any other broker in India let you trade cross currency? Can somebody confirm?

@nithin, @siva,

Hi, Any update on making available cross currency futures. I really need to diversify from INR. Can you please make it available on KITE

So forex in Zerodha, oh yeah baby!