Indian Rupee – Options contracts are a logical extension 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.
DGCX is the first exchange offshore to offer an option contracts. Option contracts allow market participants to manage risk through the trading of volatility in the underlying futures contract.
- Hedging window available long after Indian currency markets close
- Arbitrage opportunity with USD-INR options available in offshore
- Two months option contracts are available
- There is no margin applicable to the buyer of an option
- Unique trading opportunity for market participants
- 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
| Contract | Parameters |
| 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
Contract Calendar
| Expiry Month | Expiry Code | Last Trading Day |
|---|---|---|
| Jan'25 | DINRO-20250129 | 29-Jan-25 |
| Feb'25 | DINRO-20250226 | 26-Feb-25 |