Indian Rupee Options

  • Indian Rupee – Options contracts is an logical extension of the of the Indian Rupee Futures. The options contracts allow market participants to hedge their Indian Rupee exposures using various option strategies as well as a combination of futures and options.

    Dubai Gold and Commodities Exchange is the first exchange offshore to offer option contracts. Options allow participants to take a call on the underlying Indian Rupee by paying a small premium, while the option writer can benefit by taking a view on the underlying volatility of the Indian Rupee.

    • Hedging window available long after Indian currency markets close
    • Arbitrage opportunity with USD-INR options available in offshore
    • Two months option contracts are available
    • Strikes are available 2.50 Indian Rupees from the at the money strike
    • There is no margin applicable to the buyer of an option
    • Unique trading opportunity for Indians in the region and international funds with exposure to India to manage their risk
    • Options are most leveraged of all financial instruments and various strategies can be built to manage risk in the most cost effective manner for example straddles, strangles , ladders and butterflies
    • UAE is a Tax Free jurisdiction ensuring no tax liability arising out of accrued profit
    • Market hours from 8.30 AM India time till 1.25 AM India time
    • Overlaps most trading zones including Europe and United States
  • ContractParameters
    Contract Type/Style Option – European style
    Contract Name Indian Rupee/US Dollar
    Contract Symbol DINRO
    Underlying Indian Rupee/US Dollar Futures Contract (DINR)
    Contract Size 1 DINR
    Notional Contract Value INR 2,000,000
    Trading/Settlement Currency USD
    Price Quote US Dollars quoted in Cents per 100 Indian Rupees
    Tick Size US$ 0.01
    Tick Value US$ 2.00
    Exercise Price Intervals INR 0.25 converted to USD to 2 decimal places
    Introduction of New Exercise Prices For all contract months: a minimum of 41 Strike Prices in increments of 20 above and 20 below the at-the-money strike
    Settlement Basis Assignment of 1 DINR contract at the exercise price. The futures delivery month shall be:
    Exercise of Options On Last Trading Day, all in-the-money options are exercised automatically against the FCSP of the DINR
    Last Trading Day (LTD) Two Business Days prior to the last Business Day of the contract month
    Trading Days Exchange Business Days*
    Trading Hours 07:00 – 23:55 Hours Dubai time
    Trading Months Monthly contracts for two months forward
    Margining Buyer pays full premium, Seller is margined using SPAN
    New Contract Listing Five Business days immediately following the Last Trading Day
    Max Order Size 200 Lots
    Wholesale Trades Block Trade minimum size threshold: 50 lots. EFP/EFS also available. Trades must be submitted 15 minutes after execution
    No Cancellation Range See link: www.dgcx.ae/price-limits


    *See Exchange By-Laws Part M
  • Expiry MonthExpiry CodeLast Trading Day
    Oct'18 DINRO-20181029 29 Oct 2018
    Nov'18 DINRO-20181128 28 Nov 2018