http://economictimes.indiatimes.com/markets/stocks/market-news/Punters-make-a-killing-in-forex-market-with-prior-QIP-funds-info/articleshow/5053379.cms
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When funds of a certain QIP or IPO are slated to hit the Indian shores, traders and company insiders having advanced knowledge of the day, try to make the most of it by timing the market.
For instance, an inflow of $500 million in the banking system could strengthen the local currency by around 20 paise in the spot market. A trader will sell dollar-rupee contracts anticipating such a move. He may also choose to simultaneously protect himself by taking a forward cover (hedge his exposure in the forward market) before taking such a bet. This should also help protect him against allegations of front-running. The opportunity to make money out of access to information about huge fund flows is taking new dimensions. But the advent of exchange-traded currency futures market, however, has brought such a transactions in the reach of many other traders.
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