- Lower Margin
Currency Options require a margin of only 3000 Rs per lot compared to equity and index options which are typically around 50k-1L. This means even smaller traders can enter this
2. Weekly Options
They have weekly and monthly options just like bank nifty. So if you are looking to play for short time Theta, or betting on a big move within a small time frame, it can be very useful
3. No STT
The universally hated Securities Transaction Tax (STT) does not apply for currency options. Which means they are more profitable from a buying options perspective
4. Currencies are more stable compared to Equities
This means more predictability, and manageable risks, and less volatility. Great for beginners
5. It is difficult to manipulate currencies
Simple. Le Doobega Private Limited can be manipulated by 5 operators in Dharavi. Doesn’t happen in currencies (Unless the five operators are Federal Reserve, RBI, etc)
6. Small Losses
Currencies move 10–20 paise a day on an average, and like 60–70 paise in big moves. At 10 Rs per paise per lot, your losses per lot will only be a few hundred rupees. Which is as good as nothing. Low cost of learning, we say!
If you would like to try USDINR options, try searching USDINR in Options Strategy Builder by Sensibull.