Hedger:

MCX-SX aims to provide a high liquidity platform for hedging against the effects of unfavourable fluctuations in the foreign exchange markets. Banks, importers, exporters and corporates can hedge on MCX-SX at low entry and exits costs.

Investors:

All those interested in taking a view on appreciation (or depreciation) of exchange rate in the long and short term can participate in the MCX-SX currency futures. For example, if one expects depreciation of the Indian Rupee against the US dollar, then he can hold on long (buy) position in USD-INR contract for returns. Contrarily, he can sell the contract if he sees appreciation of the Indian Rupee.

Arbitrageurs:

Arbitrageurs get opportunity to trade in interest rate differentials of respective countries implied from currency futures.