Forex Trading: Buy or sell one currency with another currency. for example, Suppose Mr.ganesh wants to buy 1000 US dollar for Indian rupees at market price So he needs to pay Rs 60000 as per current market rate( This Transaction called currency trading)
How To Trade in currency or Forex in India?
Open currency Trading Account with Broker.
Transfer fund to Trading account
place buy or sell order to Terminals
What is Currency Derivatives?
Derivatives is a product or Contract which does not have any value on its own It derives its value from an UNDERLYING ASSET. Underlying may be securities, stock market index, commodities, currency etc.
What are Currency Futures Contracts?
currency futures also know as FX futures, Actually currency futures contracts is an agreement or Contract to Buy or Sell specified quantity of the underlying assets at price agreed upon by the Buyers & Seller, on or before a specified time.On indian currency exchanges the price of a future contract is in terms of INR per unit of other currency e.g. US Dollars. Currency future (fx future contract) contracts allow investors or Trader to hedge against foreign exchange risk. Currently in india Currency Derivatives are available only in four currency pairs USD (US Dollar ), EUR (Euro), GBP (Great Britain Pound) & JPY (Japanese Yen).
How Many Currency Pairs Are Available For Trading?
Only Four currency pairs are available for indian for currency trading.
Contract Specification
| Symbol | USDINR | EURINR | GBPINR | JPYINR |
| Market Type | N | N | N | N |
| Instrument Type | FUTCUR | FUTCUR | FUTCUR | FUTCUR |
| Unit of trading | 1-1unitdenotes 1000 USD. | 1 – 1 unit denotes 1000 EURO. | 1 – 1 unit denotes 1000 POUND STERLING. | 1 – 1 unit denotes 100000 JAPANESE YEN. |
What Are The Currencies Traded On MCX-SX?
At starting only USDINR pair was allowed for trading But current MCX-Sx allowed above mentioned four currency pairs for trading. You can trade in Currency in MCX-SX as well as NSE currency segments.
Does Individuals Allowed to Trade In Currency.
Yes, Any indian Resident can able to trade in currency. You can trade even 1 lot of currency. 1`1 lot = 1000 units & you required 1% margin money for trading in USD/INR.
Foreign Institutional Investors & (NRIs) Non-Resident Indians are not permitted to participate in currency futures market.
For Example
Mr. Ganesh Buy 1 Lot of USDINR. (Current market price of 1 unit USDINR On NSE/MCX-SX is 60.21)
=1 lot (1000*60.21)= 60210 ( Actual 1Lot price)
Required only 1% margin for buy 1 lot
=60210/100=602.10 (Margin Required for trading)
How Does my Profit is Rs 200 when USDINR just move up only 0.20 points?
Remember 1 lot = 1000 unit SO =0.20*1000=200 (Your Profit).
What is Forex?
The Foreign Exchange Market. Forex Market is the largest exchange market in world near about $4 trillion turnover daily. Most traded currency in the world is EUR/USD. forex market are available for 24 hours for trading. forex market is the safe market for trading because it is not possible to manipulate like stock market.
Is Forex Trading Profitable?
Yes, Forex Trading is profitable & safe for trading But u need to study hard about market movement. Forex Market is very huge market so is it almost impossible to any individual, firm or any big players of market to move forex market in his favor.
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