A host of benefits are available to a wide range of financial market participants, including hedgers (exporters, importers, corporates and Banks), investors and arbitrageurs on MCX-SX.
Hedgers: A high-liquidity platform for hedging against the effects of unfavourable fluctuations in the foreign exchange markets is available on exchange. Banks, importers, exporters and corporate houses hedge on MCX-SX. They can take advantage of liquidity in far month contracts to hedge their long term position.
Investors: All those interested in taking a view on appreciation (or depreciation) of exchange rate in the long and short term can participate in the MCX-SX currency futures. For example, if one expects depreciation of the Indian Rupee against the US dollar, then he can hold on long (buy) position in USDINR contract for returns. Contrarily, he can sell the contract if he sees appreciation of the Indian Rupee.
Arbitrageurs: Arbitrageurs get the opportunity of trading in currency futures by simultaneous purchase and sale in two different markets, taking advantage of price differential between the markets.
