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Chanakyaneeti Quantified

Blog posts : "Currency Hedging"

Happy New Year

Volatility Expected

Maurtius Tax Treaty by Government yesterday is likely to have a Volatile Impact on Markets. This may continue for a few days. FII flows may be impacted. 

Caution on Chanakya's Reverse Gear Strategy

Caution advised against taking positions in Chanakya's Reverse Gear Strategy today. Parameters are at the moment loaded against getting profit from this Strategy for May Series. Please wait for our next Update in the coming days. 

Rate Cut Positive?

25 basis point rate cut by RBI. Time to rejoice? Not really if you are dependent on interest income. Govt says their vision is to make India a low cost economy. This means further rate cuts in your deposit rates. That makes "Chanakya's Reverse Gear Strategy for smooth forward drive" our first in Cha…

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Comfort in Discomfort

Longer you feel comfortable in uncomfortable situations, better becomes your performance in Stock Market

We were absolutely right

We posted on Friday/Monday about Selling in Axis Bank/Tata Motors. Both the Stocks have crashed today.

Reverse on Monday

In pure Astrological terms, today will be the day when weaker stocks will have a rally. Reverse expected on Monday (ICICI Bank/Axis Bank/ Tata Steel)

Currency-Book Profit 2.12% in 5 trading days

Cover USD/INR Currency positions initiated on 7th Jan (additions on 11th Jan). Sell 10 lots 68 puts @ CMP Rs 1.01, Buy 30 lots 67 puts@ 0.24, Sell 30 lots 65.75 Puts @0.01. Sell 66 Call 10 lots @ 1.05, Buy 66.75 Call 30 lots @ 0.415, and Sell 67.5 Call 30 lots@ ,1125. Total money in is Rs 4525. Tota…

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Crude MCX-Book Profit

Book Profit @CMP Rs 2178. Gross Profit Rs 2000. Profit after Brokerage and Taxes Rs 1900 (approx). Time 3.18 pm

Crude MCX-Initiate
 Buy

Buy 1 Lot of Crude MCX (Feb Expiry)@CMP Rs 2158. Margin 21501. Total Capital 250000. Time 2.18 pm

Currency Options-USD/INR Add Positions

Total capital was 1.25 lacs and 25000 was used. Now we add positions to secure our trade. Buy10 Lots of  USD/INR 66 Call @ Rs 1.02. Sell 30 Lots of USD/INR Call @Rs 0.43. Buy 30 Lots of 67.5 Call @ Rs 0.085. Total Money in is Rs 150. Previous money out was Rs 1125. Thus in the overall trade, there i…

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Currency Options-USD/INR

Buy USD/INR  10 Lots 68 Put @ CMP 1.05, Sell 30 Lots USD/INR 67 Put @ 0.345, and buy 30 Lots USD/INR 65.75 Put @.0325. Margin used around Rs 25000 (as short positions are hedged). Money out is Rs 1125. Total capital Rs 1.25 lacs. Time 9.51 am

Currency-Book Profit

Cover Positions taken yesterday. Sell JPY/INR 5 Lots @Rs 56.57, and Sell 5 Lots USD/INR 68 Put @Rs 1.12. Profit in

JPY/INR =Rs 0.47 X 5000 = Rs 2350. Loss in USD/INR 68 Put= Rs 0.12X 5000= Rs 600. Brokerage+Taxes should be around Rs 150, Thus Net Profit =Rs 2350-600-150=Rs 1600. This amounts to …

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Currency- Yen Vs USD

Buy 5 Lots of USD/INR 68 Put @ CMP Rs 1.24, and Buy 5 Lots of JapaneseYen/INR @CMP 56.1. . Total Margin Rs 14700. Total Capital Rs 1 Lacs. Time 2.46 pm

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Happy New Year

ICICI Bank-Book Profits

Cover 280 Call @CMP 21.5 and Cover 300 Call @CMP 9.6. Money In is Rs 11900. Money Out when we took the Positions on Wednesday was Rs 9200. Thus Rs 2700 is the Profit which comes out to be 2.7% in 3 days. This has been achieved by using only 22% of the Margin. Stock may react after results today, and…

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ICICI Bank-Bull Call Spread

Initiate Bull Call Spread in ICICI Bank. Buy 1 Lot 280 August Call @ CMP 16.5, and Sell 1 Lot  300 August Call @CMP 7.3. Lot Size is 1000. One Combination for a capital of Rs 1 Lac. Maximum Profit is Rs 10800 and Maximum Loss is Rs 9200. Margin used is around Rs 22000. Keep remaining margin for crea…

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How many Contracts are available at a Time?

Maximum of 12 Calendar Contracts from current Calendar month. New Contract will be introduced at the following the Expiry of current month Contract.

What's the settlement date for Currency Derivatives?

Last working day of the month (subject to Holiday Calendars) at 12 noon.

Can one buy quantity of his choice in Currency Derivatives?

No. One can buy only in Lot Sizes prescribed by exchange. Contract size for USD/INR is 1000, for EUR/INR is 1000, for GBP/INR is 1000, and for JPY/INR is 100,000. One can only buy in multiples of the above Lot Sizes.

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