Futures trading was once a way for farmers to hedge against price movements and to guarantee themselves a stable income. However, in the past decade, futures trading revolutionized the way investors and speculators profited.  Trading in the futures market is a golden opportunity for traders to not only hedge against price movement, but to also profit in large amounts through market speculation.


When deciding which futures contract to trade, there are many questions to keep in mind. These include: What are the future contract’s margin requirements? How about contract size and levels of liquidity of the futures contract? What is the duration of the future’s contract? With PCM International, you can get the answers to all your questions.


What is HDFC Bank

HDFC Bank is one of India’s most popular stocks in the banking sector. This large Cap Corporation operates in three primary business segments, namely retail banking, wholesale banking and treasury. When HDFC Bank was incorporated, it was one of the first few to receive an “in principle” approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. Of the wide range of services that HDFC Bank provides to the banking sector, the main services include Interest & Discount on Advances & Bills, Income From Investment and Interest On Balances. The Bank's American Depository Shares (ADS) are listed on the New York Stock Exchange (NYSE) and the Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange.


Corporate Governance

HDFC Bank’s mission, operations and everyday tasks are all based on the philosophy on which the bank runs on. Their philosophy is built of five core values: Sustainability, Customer Focus, Operational Excellence, Product Leadership and People. The bank is committed to operating with the highest level of ethics, transparency and honesty and to becoming a World Class Indian Bank. Additionally, HDFC Bank has the objective of becoming the preferred provider of banking services not only in India but globally.


HDFC Bank Data*

-2201 branches and 7110 ATMs spread in 996 cities across India

-Net income: 128.2 billion INR

-Total Equity: 5.056 billion INR

-Revenue: 743.7 billion INR

-Market Capitalization: 330009.74


*Based on an annual report (2016)


Contract Parameters
DGCX Contract Symbol DHDFCB
Underlying Equity HDFC BANK LTD.
Underlying Country India
Contract Size 1
Notional Contract Value (Price * Contract Size) in USD
Price Quote Underlying Equity price expressed in USD (example: Bid: 1,082 / Ask 1,083)
Minimum Tick Size 1
Tick Value USD 1
Trading Days Monday through Friday
Trading Hours 07:00 - 23:30 Hours Dubai time (GMT+4)
Trading Months First two (2) serial months and 1 calendar spread
Last Trading Day ** Last Thursday of the Calendar Month
Cash Settlement Day** Business day following the Last Trading Day
New Contract Listing Business day immediately following the Last Trading Day
Final Cash Settlement Price Basis Based on the market closing price of the Underlying
Equity on the Last Trading Day in the Underlying
Country (source: public domain)
Settlement Basis Cash settled in USD
Wholesale Trades Minimum permitted block size is 100 lots
Max Open Position Limit As determined by the Exchange from time to time
Max Order Size 1,000 lots
Daily Price Movement limit No Limit, Note 1*
Initial Margin based on SPAN USD 160 (Based on SPAN, subject to change from time to time)
Calendar Spread Margin 100% benefit is offered on calendar spread positions

Note 1*: For the avoidance of ‘fat finger’ errors price band shall be 5% from previous settlement price e.g. if previous settlement price is USD 1,082, the price band is USD 54 i.e. from (USD 1,028 to USD 1136). Exchange shall relax the intra-day price range for the prices of the contract approaching the 5% limit