Dhaval Visariya

Question 1: A trader in currency markets believes that USDJPY will move from 105 to 108 in next 1 months. Which of the following would you do to execute this view using currency futures contract of JPYINR and USDINR? Options: Long JPYINR Short JPYINR Long JPYINR and short USDINR Short JPYINR and Long USDINR Answer: Short JPYINR and Long USDINR Explanation: USDJPY moving from 105 to 108 means USD becoming stronger against JPY. So he will buy USDINR and Sell JPYINR. Question 2: If more than one contract in a series are outstanding at the time of expiry/ squaring off, the contract price of the contract so squared off is determined using ______ method for calculating profit/loss on squaring-up. Options: First-in, First-out (FIFO) Last-in, First-out (LIFO) As per the decision of the Clearing corporation The Loss making contracts are first squared off Answer: First-in, First-out (FIFO) Explanation: If an investor holds multiple contr...

Question 1: Mr. Amit is working with a of a currency broking house is an expert in currency movements. As per his view, INR should appreciate against EUR in next 6 months and accordingly he advised some of his clients to take a short position by selling EUR against INR and also he guaranteed against any losses. The manager of the employee takes an action against Mr. Amit for violating some trading guidelines. What should Mr. Amit have done to avoid the punishment? Options: Amit should have advised the clients correctly to take short position for 1 months and not 6 months as 6 month is a long period Amit should have also clearly mentioned the risk to his view Amit should not have guaranteed against losses Amit should have advised the clients correctly to take short position for 12 months and not 6 months as 6 month is a short period Answer: Amit should not have guaranteed against losses Explanation: Exchange regulations specify codes of ...