For extrading is trading currenciesfrom different countries against each other. Forex is the abbreviation for Foreign Exchange.For example, the currency in circulation for Europe and United States is EUR and USD respectively, and the example of a Forex trade is to simultaneously buy EUR while selling USD.
Where does India stand in the Forex market
Presently, the Indian Forex market is the 16th largest Forex market in the world in terms of daily turnover, as per the BIS Triennial Survey report. This is owing to the Indian economy which has seen a steady growth because of the emerging industrial sectors over the past few years.
Know how to start withforex Trading in India by Trading Currencies
To start off, one must know whom to trade with. NSE, BSE,MCX-SX are the Indian exchangesthat currently offer 4 pairs (USDINR,JPYINR,GPINR,EURINR) in currency derivatives(futures and options segment). The governing body of trading currenciesin India is SEBI.
The brighter side ofcurrency trading in IndiaThere are no middlemen, no government fees, no exchange fees, no brokerage fees, low cost transactions and no fixed lot sizes. It is safe to do online currency trading because it is quick and hassle–free.
How to trade currencies and various things to keep in mind
Apart from choosing who to trade with, you must open a trading account with a brokerage house. Further, you need to deposit the stipulated cash with the trading member. With low margins, and the access to hedge possible currency risk between 9:00 am to 5:00 pm on all working days, you can trade in currency futures contracts because they are available in minimum contract sizes of 1,000 USD.
You can either trade or invest but while you trade you must
Value your ownership and know when to buy and when to sell.Keep in mind the timeframe, and do not go for the 'buy and hold 'concept because that raises the risk.
Traders look for high probability trade set-ups and they incorporate market sentiments. Traders must be aware of proper risk management.
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