Forex Trading In India: How It Works and What You Need To Know?

How and why does the demand and supply of a currency increase and decrease? Transfer your money through paypal, moneybooker or netteller. If I am an individual with no exposure to foreign exchange risks, does a currency futures exchange mean anything to me? One way to deal with the foreign exchange risk is to engage in a forward transaction. Can currency futures help small traders? If in case you hear news about the US dollar devaluing to a certain rate, you must know that this refers to the foreign exchange rate in New York, and that trading continues in other parts of the world.

Forex trading in the usual way is illegal in India. In India, Foreign Exchange or Forex trading is not allowed. If someone is found trading Forex instruments on the forex market by the Reserve Bank of India’s representatives, he/she .

Can currency futures help small traders?

The currency derivatives market is highly leveraged. However, the Indian currency markets are well-regulated and there is almost no counter-party risk. Investors should start small and gradually invest more. Investors should go long on the dollar due to global growth concerns, including poor performance of Asian giants such as China.

They should buy the dollar at every dip. We expect it to touch Rs 48 in the next months provided it holds above Rs Check the currency rates against all the world currencies here.

The entire process begins with opening a forex trading account with a broker. When you open a trading account to trade in shares you can also simultaneously open one for commodities and the other for currency.

Once you have opened your trading account for trading in the forex markets, you can buy or sell any currency. If you are using the online platform to trade, most of the brokers give you a joint option and on the screen it would show, currency, equity and commodities. You need to click the currency option to begin trading in the currency futures market in India.

Unlike the futures of the equity markets, for currency you can buy a future that can be settled almost 12 months down the line. For example, you can buy a contract today for November 4 , which can be settled on Oct 28, You have contracts that expire regularly every month.

Raviraj is the man behind moneyexcel. He is graduate in finance, engaged in blogging since 6 years. He is not affiliated with any financial product, service provider, agent or broker.

The purpose of this blog is to spread financial awareness and help people in achieving excellence for money. These should not be construed as investment advice or legal opinion. Enter your email address to subscribe to this blog and receive notifications of new posts by email.

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Mar 11,  · Trading in forex market through online broker is a Non-Bailable Offence in India. For trading in Forex you have to convert the INR (Indian Rupees) to the desired currency you want to trade i.e. the currency which . Trading in foreign currency is known as Forex Trading. You might have noticed that the value of the dollar is going up every day. Dollar exchange rate was Rs. 62 before few days and now it is Rs In fact, it works more or less like in line with how you trade in the futures market of the equity segment in India. Check the currency rates against all the world currencies here. You Need To Open A Forex Trading Account With a Broker. The entire process begins with opening a forex trading account with a broker.