The introduction of currency derivatives in India was done a decade back and from then on there have been many changes that have been implemented in the trading system in this regard. The paper gives a glimpse of derivatives in general and currency derivatives in particular. It aims to assess the development of currency derivatives in India. To study the growth of the currency derivatives, the number of contracts traded, trading volume and open interest at NSE are studied. The period of study conducted is from 2008-2009 to 2016-17. It is hoped that the currency derivatives market will develop faster and it will be a good choice for all the market participants in the near future and it will find its way in the Indian economy. This paper also explores the factors which determine the usage of currency derivatives by Indian Companies. One of the objectives is to know the development patterns of currency derivatives in India with respect to National Stock Exchange (NSE).
Keywords
Currency Futures, Currency Options, Open Interest, Volume Traded.
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