Why is it showing that no fresh position is allowed??
Can I trade in Currency pair Future contract ??
Why is it showing that no fresh position is allowed??
bro click on read more
If I Signed on declaration form, do they open my currency segment, and do i get enough liquidity to freely entry and exit my position ?
you can trade cds only if you have underlying exposure, else you will voilate fema rules even if system allows or not, as it is clearly stated by rbi the purpose is for hedging only. without declaration you can exit open positions but will not be able to take new positions. for further updates, post here - Query on Currency derivatives trading post 04 April 2024 in view of RBI circular dated 05 Jan 2024
i mean, truely i dont need currency trading for hedging,( what will i hedge, anyways ) i will trade to make profit. so if i sign the declaration, will it cause some major problem ?
first tell me what you understood from rbi’s statement regarding this and also from zerodhas article.
RBI states that a person may enter into an ETCD contract involving the INR only for the purpose of hedging a contracted exposure. and the limit is 100 Million USD .
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So Zerodha say in there first point that you can trade in currency segment but below 100 Million USD , if any problem happen above the quantity traded, then we are not responsible .
then RBI said that it is for hedging purpose only .
3 things in declaration you give - 1. trader confirms having exposure as per rbi directive, 2. the trader will have to provide evidence if rbi asks 3. if caught/no evidence, then zerodha won’t be held responsible but you will be held legally. hope this makes it more clear.
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Yep, Thanks