deal with bank's customers directly or through the forex designated branches of the bank and complete transactions involving foreign exchange in all major currencies of the world. A Currency Swap involves exchange of principal and interest payments in one currency for principal and interest payments in another currency. The party buying the contract assumes a long position while the party selling the contract assumes a short position. It also"s how to trade with rsi in forex and covers the merchant positions. Gold Purchase/Sale : The purchase of Gold in the spot and forward markets is undertaken to cover the customer transactions and bullion sale of the bank including sale of gold coins. We run Option book for USD-INR pair and a mifor book. The maturity period of such transactions is usually up to one year though positions in long term forward contracts (ltfx) are also taken.
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The option which can be exercised on the expiry date is called European Option while the one which can be exercised any time during the life of option is called American option. The desk also acts as the market maker for USD/INR pair in the inter-bank market. Some of the very high value merchant transactions are also handled directly at this desk. Gold : The desk covers gold related spot and forwards transactions. The Principal amounts in each currency are usually exchanged at the beginning and at the end of life of Swap. Along with that, the desk does proprietary trading.e., purchase and sale of foreign exchange in the interbank market with a specific purpose of benefiting from short/medium/long term price swings in the market and making profit from such trades. Forex, markets section has various desks to handle these transactions. These are used to hedge the currency or exchange rate risk. The cash flows could be: Fixed to floating interest rates - Interest Rate Swap, or in different currencies - Currency swap, or a combination of these Interest Rate Swap is an agreement between two parties in which one party agrees to pay cash flows equal. USD/ INR forwards : The USD/INR forward is a derivative product which involves purchase/sale of a definite quantity of USD at a pre-determined rate on a pre-determined date. There are two styles of options which depend upon whether option can be exercised on the expiry or prior to expiry date.