In currency futures the settlement price will decided by RBI ,so on expiry date what ever the reference price is there. on that price only settlement will be done.
As currency futures are based upon the exchange rates of two currencies, they are settled in cash, in the underlying currency.
In Currency Futures, if you donât square off the positions, all futures are settled to
the RBI reference rate on the expiry day, which acts as an underlying for the futures trading on the exchanges.
Exchange would automatically square off position on the last day of the contract expiry.Position would be closed at the final settlement price & the final settlement price will be the Reserve Bank Reference Rate as on that day.
Itâs RBI who use to declare the reference rate for the currency futures.
In currency futures position if we didnât square off the position then,the reference rate fixed by RBI on last trading day will be taken as the closing price.
Exchange would automatically square off your position on the last day of the contract expiry. Your position would be closed at the final settlement price as per the current regulations. The Final Settlement price shall be the Reserve Bank Reference Rate on the last trading day.
The position shall be automatically squared up and no open position will be left on the date of expiry. Price shall be decided by RBI, ( honestly not much idea but now will go to these links)
RBI is involved in determining the settlement price for the currency futures, except RBI no one determines the settlement price for currency
If you donât close your currency future Position on expiry the
Settlement price is fixed by RBI,Which will be considered as closing price.
RBI reference rate will be considered as the settlement price for currency futures.
Currency settlement price is taken randomly on average traded price between 11-45-12.15pm from Reserve Bank Of India and declared as Settlement price for all F&O Currency contracts at 12.30 pm
If i donât square off the position of currency futures on expiry, the settlement will happen on the price of reference rate fixed by RBI âŚ
The settlement price for currency futures will be w.r.t RBI reference rate on expiry day.
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The reference rate fixed by RBI two working days prior to the final settlement date will be used for final settlement in Currency Futures.
Similar to how Nifty futures is settled on expiry based on the underlying price of the Nifty Index, so even the currency contract are also similar to that. If the client forgets to square off the position then those futures are settled on the RBI reference rate on the expiry which plays the same role as nifty spot plays during the settlement of future contracts..
Final settlement price for a futures contract for the various currencies is according to the RBI reference rate.
For currency derivative settlement exchange will refer the RBI announced reference prices for USD and EUR, the other 2 currencies GBP and JPY rates are based on the exchange rate of EUR and USD published by RBI reference prices on the expiry date.Â
Please refer the below NSE links for more information.
http://www.nseindia.com/products/content/derivatives/curr_der/settlement_price.htm
Currency futures settlement is based on RBI reference rate on expiry day
If you don't close Currency future on expiry. The RBI reference price will be considered as the settlement price. You can check the reference price on rbi.org.in