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Showing posts from January, 2016

Pricing of USD/INR Buy Put Strips

Hey Traders,
Hope you are doing great and enjoying!!
Well today we are doing to discuss Strip ( Series ) of Buy Put Contracts of USD/INR for Exporters. Well as we understand that Buy Put is an Options Derivatives Contracts where by Exporter is having right to sell his $ earnings at an agreed rate ( known as Moneyness of the Options Contracts ) with the Bank on agreed date. Settlement of the Buy Put along with other Options Contracts to be done using Tokyo Cut ( 3.30 PM Tokyo or 11.30 AM IST )
Today we are taking current spot rate of 68.05 along with 1 Year Onshore Premiums of Rs 4.20 henceforth Outright Rate would be 72.25 for 1 Years. Implied Volatilities for USD/INR are as follows :-
1 Years USD/INR Implied Volatility - 8.425%
2 Years USD/INR Implied Volatility - 9.150%
3 Years USD/INR Implied Volatility - 9.525%
4 Years USD/INR Implied Volatility - 10.%
5 Years USD/INR Implied Volatility - 10.275%
Pricing of USD/INR Buy Put Strip ~ 1 Y till 5 Years keeping strike at 62.32 which is…

Pricing of Cost Reduction Structures ~ USD/INR Contracts

Hey Traders,
Hope you are doing great and enjoying!!
Well today would be discussing pricing of Cost Reduction Structures (Range Forwards, Seagull Contracts) along with Forwards Contracts covering till 5 Years. Well Pls be note that as per RBI Cost Reduction Structures can't be taken after 2 Years. India is one of the most conservative Foreign Exchange Markets in Asia Pacific region and we all understand that Singapore is acting as World Financial Centre.
Pricing of USD/INR LTFX Forwards Contracts keeping spot at 67.82 levels. If today any exporter would like to price USD/INR Forwards Contracts where by Exporter is selling $ and buying INR from 1 Years period till 5 Years.
1 Years O/R Rate (Outright Rate) = 67.82 + 4.1875 = 72.00
2 Years O/R Rate (Outright Rate) = 67.82 + 7.60 = 75.42
3 Years O/R Rate (Outright Rate) = 67.82 + 11.46 = 79.28
4 Years O/R Rate (Outright Rate) = 67.82 + 15.55 = 83.37
5 Years O/R (Outright Rate) = 67.82 + 19.50 = 87.32
Pricing of Options Contracts - …

Launch of Treasury Club " Maverick Traders Club "

Dear Traders ,

Hope you are doing great and enjoying !!

Well happy to share that our Brand ~ " Foreign Exchange Maverick Thinkers " now covering majority of the Electronic Platforms like You Tube Channel , Daily Motion Channel , What's UP APP Derivatives Groups , Telegram APP Derivatives Groups , LinkedIn , LinkedIn Academies , Twitter Academies , Skype Foreign Exchange Academies , Google Blog , Google Groups.

Now the time has come when the Brand to move on and in that regards we are coming up with the launch of own Treasury Club " Maverick Traders Club " which would open to everyone in Asia Pacific Level.

Well the purpose of the Group is to connect Industry , Bankers , Foreign Exchange Professionals , CEO , CFO , Corporate Treasurers , Controllers and institutions and sink them with reality happening in markets. In that regards Group would do Seminars , Workshops , Trainings , Debates , Technical Trainings and respective others by charging Quarterly fees.

We…

Foreign Exchange Maverick Thinkers ~ Brand across Social Networks

Dear Friends,

Sub:- Presence of our Brand ~ "Foreign Exchange Maverick Thinkers "

Well happy to share that our Brand " Foreign Exchange Maverick Thinkers " is now having presence on almost all Electronic Platforms across the Globe. Sitting today which is 26th Jan'16 "Foreign Exchange Maverick Thinkers "is having presence covering the following Platforms :-

ØYou Tube Channel:-Well my You Tube channel - “Foreign Exchange Maverick Thinkers “ covers 100 technical videos on Foreign Exchange Risk Management, Treasury Risk Management, Onshore & Onshore Treasury Markets (Singapore, NY, London, Luxembourg, Frankfurt, Australia, Japan, Philippines, Dubai), Interest Rate Derivatives like Interest Rate Swaps, Credit Swaps, Total Return Swaps, Credit Default Swaps, Fixed Income Markets (Money Markets, Debt Markets, Capital Markets), International Accounting Standards (IFRS, US GaaP, International Accounting Standards, IND-AS, Indian GaaP), Corporate Finance , S…

USD/INR Volatility ~ Options Contracts

Hey Traders,

Hope you are doing great and enjoying !!

Sub:- Usage of Options Contracts covering USD/INR Exposures

Well as we understand the fact that today Global markets are facing lots of volatility and credit goes to huge volatility in Chinese Financial Markets along with expectations of lower GDP of United States.

Well in that regards lots of volatility is happening in Indian Financial Markets as well and sitting today INR has already touched 68.20 levels as well which is not a good sign for Importers in the Country. On paper Reserve Bank of India along with Nationalised Banks are tying protecting INR however INR all scheduled to touch 70 levels soon. Well sitting today it's a big question for all Exporters and Importers as how to hedge their Foreign Currency Receivables , Payables.

Well the most obvious answer is LTFX which would cover your spot rate and long term premiums however Pls be note that if you are doing Long Term Forwards Contracts then you are stick means you can…

Indian Rupee Update ~ 21st Jan'16

Hey Traders,

Hope you are doing great and enjoying !!

Well here you go with my update on Indian Rupee.

As Oil fell from 30 to 27 levels, Dow fell more than 500 points before recovering and closing 1.6% down. Lackluster US data along with market sentiments led to a steep fall in yields for USTs across the curve. The late recovery in the US session has led to a mild improvement in sentiment in the Asian session with oil also registering at 4% bounce. Yesterday the Bank of Canada disappointed markets by not cutting rates further. Today we have the ECB announcement, while the ECB is expected to be balanced to dovish it is unlikely that they will do incremental easing in two successive months.

Since the beginning of this week USDCNH has gradually moved higher. Emerging market currencies today morning have registered mild appreciation which is reflected in a lower USDINR opening. USDINR 1M ndf is near flat. I would expect trend continuation and equities to remain fragile. Currencies in turn …

Projection on Japanese Yen ( JPY )

Hey Traders ,

Hope you are doing great and enjoying !!

Well, Pls find enclosed Projections on Japanese Yen.

As the tendency for USD and JPY to react to fluctuations in Risk sentiment in the same direction has strengthened. USD/JPY has stuck to a narrow range over the period. However, at the same time, JPY has appreciated against the majors other than NZD over the period and Appreciated by 1% in trade-weighted terms.

This month, we will have two BoJ monetary policy meetings and we now expect the BoJ to conduct additional monetary easing (QQE3) at the October 30 meeting, which will be accompanied by semiannual Outlook Report, though it seems to be close call (previously, we had expected the BoJ would act in January or April next year). With a series of weak Japanese data released in recent weeks, we have revised Down Japan’s 3Q GDP growth forecast to -1.0% q/q Saar from +0.8%, meaning Japan will experience a technical recession.
Although QQE1 (April 2013) and QQE2 (October 2014) triggere…

Rahul Magan Google Group ~ "Foreign Exchange Maverick Traders "

Dear Members ,

Hope you are doing great and enjoying !!

Well would like to appraise you about my Google Group - "Foreign Exchange Maverick Traders "

Well the Group is based on the thoughts of having excellent knowledge to all of the members having sharing books and other Research reports which are easily accessible in public domain. Well the Group is attached with a Public library having more than 200 books covering all sorts of topics.

Currently the Group is having more than 200 members across the Globe.

You are most welcome to join the Group.

Simply open Google Groups and type " Foreign Exchange Maverick Traders " and join the Group. Then you would automatically be the member of the Group and able to access all the books. Well Pls be note that Google Group " Foreign Exchange Maverick Traders " is natural extension of our brand " Foreign Exchange Maverick Thinkers " covering LinkedIn till Twitter.

Good Luck Readers,

Rahul

Founder of the Brand …

Trading Call ~ 20th Jan'16

@ Traders ,

Well as you understand that markets are getting highly volatile and USD seems to be a heaven currency of the world. Credit of the same goes to CNY , Euro and GBP. Well as a Corporate Treasurer and Trader never appreciate the decision by UK to exit Euro as this lead to sudden fall in the valuation of GBP and all British exporters are gone and all Importers are happy.

Well sitting today which is 20th Jan'16 at 4.30 AM in Sydney Australian Dollar and New Zealand Dollar are fighting with each other and seems they are looking at Parity ??? OOPS ???

Australian Dollar is trading at .6926 vs. USD as it is a Direct Pair and New Zealand Dollar is trading at .6485 levels vs. USD as it is too a direct pair.

Indian Rupee is also trading higher which is 67.61 levels along with all weakening Currencies like Philippines Peso ...++

Well as a Corporate Treasurer , Proprietary Trader would like to share that $ Strength would continue however at the same time we should not discount the…

YOU TUBE Channel ~ " Foeign Exchange Maverick Thinkers "

Dear Friends,

Hope you are doing great and enjoying !!

Well would like to invite you in my well established YOU TUBE Channel ~ " Foreign Exchange Maverick Traders " having 90 Videos , 500 Subscribers , 55 K Videos Reviews  , 350 K Minutes Reviews.

Well You Tube Academy offers videos covering :-

Foreign Exchange Risk Management
Treasury Risk Management
Currency Derivatives
Interest Rates Derivatives
Structured Finance
Applied Finance
Interest Rates Swaps
Currency Swaps
Business Valuations
Non Deliverable Forwards ( Offshore Treasury Markets )
Overnight Index Swaps (OIS)
Accounting Standards ~ Business Combinations ( IFRS , US GaaP )
Accounting Standards ~ Accounting of Earnouts  ( IFRS , US GaaP )
Proprietary Trading ( Currencies , Equities , Interest Rates Futures , G Sec Futures )
MIFOR Swaps
Assets Swaps
Basis Swaps
Hedge Accounting
Business Valuation
ISDA ( International Swaps and Derivatives Association )
Offshore Treasury Financial Centres
Fair Value Hedging
Ca…
@ Friends ~ Well would like to invite you to join my Brand ~ " Foreign Exchange Maverick Thinkers " having presence of all Social - Electronic platforms across the Globe.

To name a few :-

1. LinkedIn
2. You Tube
3. Daily Motion
4. Vimeo
5. What's UP
6. Twitter
7. Facebook Foreign Exchange Groups
8. Skype Foreign Exchange Groups


You are most welcome to connect with me at 91-9899242978 , rahulmagan8@gmail.com or Skype connect ~ Rahul5327 in that regards.

Best,

Rahul

Corporate Treasurer , EXL Service Holdings, Inc.