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

Contract Specifications

ContractParameters
Contract Type/StyleOption – European style
Contract NameIndian Rupee/US Dollar
Contract SymbolDINRO
UnderlyingIndian Rupee/US Dollar Futures Contract (DINR)
Contract Size1 DINR
Notional Contract ValueINR 2,000,000
Trading/Settlement CurrencyUSD
Price QuoteUS Dollars quoted in Cents per 100 Indian Rupees
Tick SizeUS$ 0.01
Tick ValueUS$ 2.00
Exercise Price IntervalsINR 0.25 converted to USD to 2 decimal places
Introduction of New Exercise PricesFor all contract months: a minimum of 41 Strike Prices in increments of 20 above and 20 below the at-the-money strike
Settlement BasisAssignment of 1 DINR contract at the exercise price. The futures delivery month shall be:
Exercise of OptionsOn 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 DaysExchange Business Days*
Trading Hours07:00 – 23:55 Hours Dubai time
Trading MonthsMonthly contracts for two months forward
MarginingBuyer pays full premium, Seller is margined using SPAN
New Contract ListingFive Business days immediately following the Last Trading Day
Max Order Size200 Lots
Wholesale TradesBlock Trade minimum size threshold: 50 lots. EFP/EFS also available. Trades must be submitted 15 minutes after execution
No Cancellation RangeSee link: www.dgcx.ae/price-limits

*See Exchange By-Laws Part M

Contract Calendar

Expiry MonthExpiry CodeLast Trading Day
Oct'19DINRO-2019102929-Oct-19
Nov'19DINRO-2019112727-Nov-19