Commodity and Currency markets are seeing growth in Indian markets and the world over the past several years. While equity markets are the most talked about in India, the significance of commodity and currency markets is often under mentioned.
This is in contrast to global trends where currency and commodity markets see higher trading and turnover compared to equities. For example, you have seen / heard about the crude oil prices affected by the ongoing Russia and Ukraine war, which as a result has caused volatility in the markets and trading volumes are up.
It is important and interesting to understand the price behaviour of commodities since they are so closely interlinked to our daily life. From the petrol that drives our cars to the food grains that make up for our daily intake, we deal in commodities every day in some form or the other. Currency markets are equally important because we transact both locally and globally with currencies.
On Dhan as well, we have seen our commodity trades go 4X in the past few weeks. As more users have started trading on Dhan for this segment - we received feedback and suggestions from them to improve this and that’s what we are doing now.
Introducing Dashboards for Commodity & Currency
One of the most loved features of Options Trader App is the easy navigation to different options trading insights and data like Nifty & BankNifty pages, Advance - Declines, Top Traded Contracts, OI & Price Gainers-Losers, and most importantly the live Option Chain on Dhan. Everything and anything a trader needs is just a click away on the Options Trader app home page.
To start with, we designed these dashboards for Nifty & Bank Nifty traders. Now, in the latest release, we have introduced a similar dashboard for Currency & Commodity. All the popular Currency & Commodity products available for trading in NSE & MCX respectively have been placed on the home page.
Currency Dashboard includes shortcuts of all cross-currency pairs. On tapping, you find a dedicated page for the currency pair, which includes top traded Futures & Options contracts and shortcuts for Option Chain. Like here for example the dedicated section for USD-INR.
In the similar, we have dedicated pages for all the popular bullions and energy products.
Know more about what is happening with Metal prices & how to trade in Gold Option contracts & finding new opportunities.
FINNIFTY: Top 100 traded contracts by Trade Value
We know traders are now getting thrilled and excited about Tuesdays (FinNifty expiry) as they are on Thursdays for Nifty & Bank Nifty. With increasing market activity in Nifty Financial Services or FinNifty, traders find great opportunities to trade. Hence, we have made a dedicated page of FinNifty of top 100 traded options contracts by trade value. Amazing. Right?
Here, sharing some more insights on the FinNifty Index. It is a market-cap-weighted average basket of stocks from Banking, Housing finance, Insurance, and other Financial Services. 60% of weight goes to banks, hence a stark correlation with bank nifty can be seen here.
The lot size of FinNifty is 40 and the freeze quantity is 2800 i.e. 70 Lots. The margin requirement for FinNifty straddle / strangle is around INR 1.10 - 1.20 lakh whereas the same strategy of banknifty requires a margin of INR 1.8 - 2.00 lakh. Therefore, one can express a similar view, not exactly, in FinNifty option strategy with a lower margin requirement than BankNifty. The only downside, as of now, FinNifty market is new and amateur so there is less liquidity. But with increased activity and trading volumes, this reservation may fade soon.
Do let us know what specific feature or tool we can provide for FinNifty, Commodity & Currency traders. Happy to learn from you all.
Taking your Investing & Trading journey upwards and onwards.
Product @ Dhan