Dubai to offer rupee options - FT.com

Dubai’s gold and commodities exchange is extending its Indian rupee trading contracts by offering investors a platform to trade options contracts for the first time outside India to meet growing demand for currency-denominated derivatives.

Options contracts grant investors the right to buy or sell at a fixed price within a defined period or on a predetermined date.

They are used to offset the risk of currency fluctuations. Investors can also make speculative bets using the contracts or explore arbitrage opportunities to benefit from different exchange rates.

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