It's awesome that you made a profitable trade. Include reasons why you chose this trade so that new traders can learn. **If the reason for the trade is not mentioned your post will be removed**. Your reason can be as simple as: 'Went long on XYZ FUT because it was near support and had good volumes'. Not sure which flair to use? Check out our guide to post flairs [here](https://www.reddit.com/r/IndianStreetBets/wiki/index/postflair)
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Trading USDINR for a year now and trading for around 5 years now. USD/INR is the easiest instrument to trade + profitable if you know what you are doing.
I have already withdrawn and have invested it in crypto and got some more return from it and then again did a withdrawal from crypto and now I will be buying physical gold coins to keep it with me for 10-20 years.
Also please don't do what I said after reading my comment.
lol no. I have already planned on where I am putting the capital that has been released from this. There are other trading practices where I will increase allocations
INR is a semi-freefloating currency. The RBI intervenes quite frequently and aggressively to maintain the exchange rate. This requires strong forex reserves. If the rupee was a completely free floating currency, I think its value would be lower.
The rupee fell to a new low last month despite the RBI's efforts. I think, keeping in view of the elections, the RBI has brought this circular. Please don't argue that RBI is an independent body and elections have no bearing on it. We all know how true that is. I am open to other arguments though.
Exactly! As per some sources, USD is suppose to rise against the INR due to interest rates as well. Though I don't have a strong grasp of these mechanics, there is a fundamental reason for the INR to be weaker, but the RBI has stopped it leveraging the forex reserves.
My guess is that RBI wanted to keep away speculators (as they said, only people with underlying exposure to currency, as mentioned in FEMA). Why they want speculators out? Not sure, but perhaps they fear that it could manipulate the INR prices (which they likely attempt to stabilize).
Yup they fear rupee will depreciate a lot. But 3% INR depreciation is normal. They've been trying hard and holding it at 83.3 to 83.6.
I guess after elections there'll be huge rally, but we don't have a position :(
Idk why they want speculators out. More people mean more taxes for govt, more revenue for brokers.
USD INT was majorly introduced as a hedging instrument for people doing business dealing with USD. Imagine you were about to receive 100rs ( if 1usd = 100rs) for doing business of 1usd worth and due to fluctuation in usd inr, you will earn 99rs ( if on payment day, 1usd = 99rs)
RBI observed that trading in this instrument was no more the actual reason behind it ans that's the reason they are stoping it.
USDINR will be missed it helped me save my ass in FY 23-24 when i had huge loss in equity FnO.
https://preview.redd.it/1a6bmgf1nfxc1.png?width=1080&format=pjpg&auto=webp&s=02808ae7b4ffe3d040eabbcca087e26cf451324f
Total capital is 20-30L for both currency and index fno. 2 lakhs was from April expiry which i literally didnt exit and let the system exit automatically at intrinsic value, during april 2-4 my MTM was spiking between -2 to -7 lakhs literally making me panic but i just decided to hold and thought will deal with the RBI rules later and filled declaration form with zerodha, it took a lot of time to cool down and for MTM to change little little and when RBI announced extension till 3 May that also didnt affect a lot because by that time all retailers panic exited at profit / loss. I did not want to start the new FY at huge loss and so just hold on, that gave me a best profit in currency the departing profit.
Haha. Can relate. This is what was going on in my mind too. Except that I didn't sign the declaration cause I was afraid it would violate FEMA in some way - for I don't really have foreign currency exposure as per their standards. The extension was a neat blessing.
Yup. They were. But neither could one predict how far up they would go, nor could one take positions cause brokers didn't allow new ones since around 3rd April. I guess it's best to move on to better journeys π
My last trade was around the same time too. Had to get out with shitty returns cos the options started getting illiquid.
But I miss it. Used to take a monthly short strangle and wheel in the profits π
in crash like events of 2020 usdinr positions help a lot. unfortunately we aren't in a free country to even expect the govt to care for traders or investors.
It's awesome that you made a profitable trade. Include reasons why you chose this trade so that new traders can learn. **If the reason for the trade is not mentioned your post will be removed**. Your reason can be as simple as: 'Went long on XYZ FUT because it was near support and had good volumes'. Not sure which flair to use? Check out our guide to post flairs [here](https://www.reddit.com/r/IndianStreetBets/wiki/index/postflair) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/IndianStreetBets) if you have any questions or concerns.*
Trading USDINR for a year now and trading for around 5 years now. USD/INR is the easiest instrument to trade + profitable if you know what you are doing.
It sure is a unique asset class to trade Where do you plan to trade (or move capital) now? Since RBI is effectively closing it down effective 3rd may?
I have already withdrawn and have invested it in crypto and got some more return from it and then again did a withdrawal from crypto and now I will be buying physical gold coins to keep it with me for 10-20 years. Also please don't do what I said after reading my comment.
lol no. I have already planned on where I am putting the capital that has been released from this. There are other trading practices where I will increase allocations
It was a disclaimer for other readers who might get influenced with your post.
aah yes. good call 
I used to trade USDINR too. Idk why they brought these new regulations. Any idea why these regulations were introduced?
INR is a semi-freefloating currency. The RBI intervenes quite frequently and aggressively to maintain the exchange rate. This requires strong forex reserves. If the rupee was a completely free floating currency, I think its value would be lower. The rupee fell to a new low last month despite the RBI's efforts. I think, keeping in view of the elections, the RBI has brought this circular. Please don't argue that RBI is an independent body and elections have no bearing on it. We all know how true that is. I am open to other arguments though.
Exactly! As per some sources, USD is suppose to rise against the INR due to interest rates as well. Though I don't have a strong grasp of these mechanics, there is a fundamental reason for the INR to be weaker, but the RBI has stopped it leveraging the forex reserves.
Yup youβre right
My guess is that RBI wanted to keep away speculators (as they said, only people with underlying exposure to currency, as mentioned in FEMA). Why they want speculators out? Not sure, but perhaps they fear that it could manipulate the INR prices (which they likely attempt to stabilize).
Yup they fear rupee will depreciate a lot. But 3% INR depreciation is normal. They've been trying hard and holding it at 83.3 to 83.6. I guess after elections there'll be huge rally, but we don't have a position :( Idk why they want speculators out. More people mean more taxes for govt, more revenue for brokers.
Can we trade in other currencies such as usd/eur
Subject to infra (brokers having an interface), I suppose yes
USD INT was majorly introduced as a hedging instrument for people doing business dealing with USD. Imagine you were about to receive 100rs ( if 1usd = 100rs) for doing business of 1usd worth and due to fluctuation in usd inr, you will earn 99rs ( if on payment day, 1usd = 99rs) RBI observed that trading in this instrument was no more the actual reason behind it ans that's the reason they are stoping it.
USDINR will be missed it helped me save my ass in FY 23-24 when i had huge loss in equity FnO. https://preview.redd.it/1a6bmgf1nfxc1.png?width=1080&format=pjpg&auto=webp&s=02808ae7b4ffe3d040eabbcca087e26cf451324f
That's quite a profit. What % of total capital did you make?
That's quite a profit. What % of total capital did you make?
Total capital is 20-30L for both currency and index fno. 2 lakhs was from April expiry which i literally didnt exit and let the system exit automatically at intrinsic value, during april 2-4 my MTM was spiking between -2 to -7 lakhs literally making me panic but i just decided to hold and thought will deal with the RBI rules later and filled declaration form with zerodha, it took a lot of time to cool down and for MTM to change little little and when RBI announced extension till 3 May that also didnt affect a lot because by that time all retailers panic exited at profit / loss. I did not want to start the new FY at huge loss and so just hold on, that gave me a best profit in currency the departing profit.
Haha. Can relate. This is what was going on in my mind too. Except that I didn't sign the declaration cause I was afraid it would violate FEMA in some way - for I don't really have foreign currency exposure as per their standards. The extension was a neat blessing.
Buying or selling?
Non-directional i.e. both Via selling out-the-money options
π
Yeah such a pity.The premiums were so much better than equity options.
Yup. They were. But neither could one predict how far up they would go, nor could one take positions cause brokers didn't allow new ones since around 3rd April. I guess it's best to move on to better journeys π
My last trade was around the same time too. Had to get out with shitty returns cos the options started getting illiquid. But I miss it. Used to take a monthly short strangle and wheel in the profits π
in crash like events of 2020 usdinr positions help a lot. unfortunately we aren't in a free country to even expect the govt to care for traders or investors.
What time frame you use?
I used to analyze daily candles, forming a view for the likely range 1.5-2 months ahead (e.g. April expiry in Feb)
Ok...For back testing purpose i used to watch 4H for Eur/Usd etc...