rossmerill
New Member
- Feb 12, 2010
- 1
- 0
With the advent of the online trading facility, the trading process has been streamlined and a trader is informed of the developments in the market almost as and when a new development is taking place. In the currency market forex trade alerts keep a trader informed of the various developments. The settlement process also is now made much easier. There is no need to engage in panic buying and selling.
The developments that help a trader to trade more include:
The rolling settlement is on a T + 5 working day basis, i.e., trades typically taking place on a Monday will be settled on the next Monday. Tuesdays trades will be settled on the next Tuesday and so on.
All settlements for securities are through the clearinghouse in the case of physical settlement and through the depository in the case of the book entry sub-segment.
Fund settlement takes place through designated clearing banks
Deals on the book entry sub-segment are settled through the depository
The National Securities Clearing Corporation (NSCCL) interfaces with the depository on the one hand, and the clearing banks on the other, to provide Delivery-versus-Payment (DVP) settlement for depository enabled trades.
The clearing corporation is rigorous in the enforcement of its settlement schedules in terms of timely receipt of funds and securities as well as in the handling of short and bad deliveries
All short deliveries and not rectified bad deliveries are bought in through auction on the pay-out day and all shortages and not rectified bad deliveries not bought-in are deemed closed out
Forex trade that is booming all over the world often involves a few most traded currencies. With the freedom given to the Foreign Institutional Investors (FIIs) and pension funds, the demand for foreign exchange has gone up phenomenally. Thus, according to the market developments and the variations in demand and supply, a trader will be able to generate a profit or a loss on any given day.
The developments that help a trader to trade more include:
The rolling settlement is on a T + 5 working day basis, i.e., trades typically taking place on a Monday will be settled on the next Monday. Tuesdays trades will be settled on the next Tuesday and so on.
All settlements for securities are through the clearinghouse in the case of physical settlement and through the depository in the case of the book entry sub-segment.
Fund settlement takes place through designated clearing banks
Deals on the book entry sub-segment are settled through the depository
The National Securities Clearing Corporation (NSCCL) interfaces with the depository on the one hand, and the clearing banks on the other, to provide Delivery-versus-Payment (DVP) settlement for depository enabled trades.
The clearing corporation is rigorous in the enforcement of its settlement schedules in terms of timely receipt of funds and securities as well as in the handling of short and bad deliveries
All short deliveries and not rectified bad deliveries are bought in through auction on the pay-out day and all shortages and not rectified bad deliveries not bought-in are deemed closed out
Forex trade that is booming all over the world often involves a few most traded currencies. With the freedom given to the Foreign Institutional Investors (FIIs) and pension funds, the demand for foreign exchange has gone up phenomenally. Thus, according to the market developments and the variations in demand and supply, a trader will be able to generate a profit or a loss on any given day.
