Loss in currency derivative in dotex

I think currency trading does not fall under the exceptions provided u/s 43(5).  It will be treated as speculation loss which means that it cannot be set off against other income.

currency derivative loss is not speculative in nature this is an exception  so you can setoff such loss against business income

Quoting clauses of Sec 43 relevant in our case.

43.(5) "speculative transaction" means a transaction in which a contract for the purchase or sale of any commodity, including stocks and shares, is periodically or ultimately settled otherwise than by the actual delivery or transfer of the commodity or scrips:

Provided that for the purposes of this clause—

(d) an eligible transaction in respect of trading in derivatives referred to in clause (ac) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) carried out in a recognised stock exchange; 

shall not be deemed to be a speculative transaction.

78[Explanation 1].—For the purposes of 79[clause (d)], the expressions—

(i) "eligible transaction" means any transaction,—

(A) carried out electronically on screen-based systems through a stock broker or sub-broker or such other intermediary registered under section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) in accordance with the provisions of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) or the Securities and Exchange Board of India Act, 1992 (15 of 1992) or the Depositories Act, 1996 (22 of 1996) and the rules, regulations or bye-laws made or directions issued under those Acts or by banks or mutual funds on a recognised stock exchange; and

(B) which is supported by a time stamped contract note issued by such stock broker or sub-broker or such other intermediary to every client indicating in the contract note the unique client identity number allotted under any Act referred to in sub-clause (A) and permanent account number allotted under this Act;

(ii) "recognised stock exchange" means a recognised stock exchange as referred to in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and which fulfils such conditions as may be prescribed and notified80 by the Central Government for this purpose;

Now  quoting clause ac of  sec 2 of SCRA

(ac)]"derivative" includes—

Since SCRA gives us an inclusive definition, we can try to accomodate currency derivatives in Sec 43(5)(d).

But even that will become disputable, when the ball comes to the court of our hair-splitting AO-s during 143(3) assessment.

But here is an article which argues that it is a business transaction, which I feel is rebuttable.

https://www.livemint.com/Opinion/Y9a6I0tbDjw6WWpEyNvrJK/How-currency-derivatives-are-taxed.H T M L