Is demat account is necessary for trading in Futures and options and currency

No, Demat Account is not necessary for trading in the Futures & Option/ Currency.

Because there is no delivery of stocks for trading in F&O.

Ideally Demat is not required for futures and options and currency trading. But currently there is a mandatory rule from regulators that Demat account is required for buying securities in the capital markets.

Generally people assume that if they want to trade on the exchange then a DEMAT is mandatory. I too always used to refer to my account with a broker as a demat account. Now I know that demat account is an account on the depository (NSDL/CDSL) & trading account refers to an account on the exchange.

So as answered that a demat is not required for derivatives, I would like too also add that it is not required for mutual funds too. There has been this myth that demat is mandatory for investing in MFs. Ofcourse its required if you want to invest yourself online.

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Demat is not required for F&O and CDS

Demat is required for Equity Stocks.

Demat is required for MCX.