ramesh.kerala
New member
Dear all
I am a new member .My name is Ramesh working in an exporting form. I planning to do MBA shortly. Meanwhile I have some doubt regarding forex management.
At present appreciating rupee since last two three years have been denting the botomline of our company. Though we wanted to bill foreign buyers in euro or pond they were unwilling .
At present what we are doing is only booking forwards and settle it by submitting the bills in dollars.
Now. I have the following questions.
Is it possible to convert our open forex receivable postion in $ to euro or pound..
For eg.
We have 1,00,000 usd worth exports in march future.
On September 23
March future was
---------USD/INR-------EUR---------------GBP---
EXPORTS--------- --USD--- INR------USD-----INR
31-Mar---39.9150---1.4333 57.21 2.0379 81.34
---------USD/INR-------EUR---------------GBP---
EXPORTS------------USD---- INR---- USD------INR
31-Mar---39.9450--1.4334--57.26----2.0384-- 81.42
Can I book 100000 usd @ Rs.39.9150 (march )and convert it by buying euro @ 57.26 or GBP @ 81.42 and keep the position open till march and settle the dollar future by submitting the bill and and covering the open position in euro or pound and make gains in difference in excahange?
Q2.
If the above possible and suppose I have converted my position of 100000 usd in euro. Later on, can I convert the open long position in euro to another currency say pound before any date, prior to settlement.?
What is the term used for above transaction is it cross currency or currency swap?
Is there any restriction for buying long or selling short without underlying exposure?. Is it allowed to trade in future without actual exposure and make profit or loss out of it.
Some one told me that with out underlying contract we can not trade it in futures and if we fail to submit the bills and if any gains arise out of the transaction due to exchange variation will not be passed on to us but loss if any will be passed on to us. Is it correct?.
I am a new member .My name is Ramesh working in an exporting form. I planning to do MBA shortly. Meanwhile I have some doubt regarding forex management.
At present appreciating rupee since last two three years have been denting the botomline of our company. Though we wanted to bill foreign buyers in euro or pond they were unwilling .
At present what we are doing is only booking forwards and settle it by submitting the bills in dollars.
Now. I have the following questions.
Is it possible to convert our open forex receivable postion in $ to euro or pound..
For eg.
We have 1,00,000 usd worth exports in march future.
On September 23
March future was
---------USD/INR-------EUR---------------GBP---
EXPORTS--------- --USD--- INR------USD-----INR
31-Mar---39.9150---1.4333 57.21 2.0379 81.34
---------USD/INR-------EUR---------------GBP---
EXPORTS------------USD---- INR---- USD------INR
31-Mar---39.9450--1.4334--57.26----2.0384-- 81.42
Can I book 100000 usd @ Rs.39.9150 (march )and convert it by buying euro @ 57.26 or GBP @ 81.42 and keep the position open till march and settle the dollar future by submitting the bill and and covering the open position in euro or pound and make gains in difference in excahange?
Q2.
If the above possible and suppose I have converted my position of 100000 usd in euro. Later on, can I convert the open long position in euro to another currency say pound before any date, prior to settlement.?
What is the term used for above transaction is it cross currency or currency swap?
Is there any restriction for buying long or selling short without underlying exposure?. Is it allowed to trade in future without actual exposure and make profit or loss out of it.
Some one told me that with out underlying contract we can not trade it in futures and if we fail to submit the bills and if any gains arise out of the transaction due to exchange variation will not be passed on to us but loss if any will be passed on to us. Is it correct?.