Currency Trading

What is Currency Trading?

One of the largest investment markets, trading different currencies involves participation from around the world. It provides you a window to trade the currency pairs for 5 days a week for 24 hours. With the increasing amount of trader’s interest around the world, currency trading has become the most liquid financial markets. Throwing light on one of the main reasons for this kind of attraction towards the currency market is- one it is traded across all major markets and second there is seemless flow of information across. The adaptation of technology has also enabled the trading experience with no centralized exchange even more transparent.

Currency Trading in India

While understanding the dynamics of currency trading in India, they are traded in future lots and settled in cash. There are four famous currency pairs traded in India which are as follows USD-INR, GBP-INR, and INR-JPY. To trade the pair currency, one is called the base currency while the other is referred to as the quotation currency. Any trader looking for currency trading should open their accounts with the brokers who trade on exchanges like NSE and BSE.

What are the instruments available for currency trading in India?

The currencies are traded via derivatives instruments in the Indian market and are cash-settled. By cash-settled, it means that there is no actual exchange or delivery of currencies on the expiry day. Such an instrument is traded easily by the market participants, like corporates, retailers, or even speculators. The derivate products provide a transparent mechanism with a lesser possibility of any information or insider trading. In India, exchange-traded currency futures are mostly traded. By definition, futures contracts are an agreement to buy or sell the underlying currency on the future date at a specified rate.

Benefits of Currency Trading

It provides an opportunity to sneak into the complexities of the global financial world.

Helps in hedging your capital by taking appropriate positions in the foreign exchange markets.

Ample of arbitrage opportunities are available with different currencies and global markets.

Trade in the currency with high leverage by paying only 3-4% of the margin of the total value.

Yield higher returns with the most liquid markets of the capital world.

Why invest with FINDOC?

We leave no stones unturned in making your trading experience like never before. We provide you a smooth and technology-enhanced platform that makestrading this segment comfortable along with hedging your risks.

We are the members of the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), and provide depository services through NSDL.

The platform is well secured and equipped with progressive technology so that you can have access to everything required.

You can experience trading across devices like a mobile, desktop, tablet without any hassles.

If you are already one of our broking clients, you don’t need to open another account for currency trading. The existing account will be authorised for this segment as well.

You can access our advanced fundamental and technical research on the current market via daily, weekly newsletter updates on our platform.

The diverse portfolio is available on the platform to choose from the following pairs of USD/INR, EUR/INR, GBP/INR, and JPY/INR.

It is easier to enter this market but harder to make money. However, with our algo trading platform, you can backtest a number of strategies and yield returns

You don’t have to worry if you get stuck anywhere while using Findoc, the platform has dedicated customer service support.

Experience the advanced paperless investing with the platform.

Frequently Asked Questions

How do you trade currency?

Currency trading includes trading in pairs. For example - the English pound against the US dollar. It’s all about relative value and whether one currency is stronger than the other. Unlike the stock market, in the foreign exchange market, you have to sell one currency and buy the other. It includes taking stances while trying to extract profits.

Can I trade in forex with 100 dollars?

Yes. One can start trading with small balances. It gives you an idea of how the market works—most people who are new to forex try to start with small numbers so risks can be minimized. No matter the amount of money, since forex features trading using leverage, a small sum of money can control a much bigger financial position.

How do I start trading?

You can start by picking any currency pair you wish to trade-in. Beginners usually pick the English pound and the US dollar pair, since they are the major currency pairs and there is always a lot going on in those markets. If you trade in 25,000 units or less, you can trade them in zero spreads.

How much money should you trade-in?

When you trade-in forex, you are basically trading using leverage. For example, if you have a 100,000 dollar position in one currency, you don’t actually tie up the whole amount but only a very small part, for say- 1 per cent. Since currencies don’t move too much during the day and you trade using leverage, even a small sum of money can control a much bigger financial position. If things take a turn, hedging can help you from losing a lot of money.

How do I sell foreign currency?

One easy answer to the above question would be, by locating the sell button on the platform. If you observe that the market has risen to a high mark, and if you feel like it might drop after that, you must choose to sell your position and bag the profit. If in any other case, you are sceptical about going to losses, stop losses, and currency hedging can save you from losing more money than you anticipate. Stop losses automatically sell your position if the graph starts to fall from the desired position that you decide on.

How do you buy currency?

The foreign exchange market is the most significant market in the world. It trades trillions of dollars every single day. On the platform, there are over 70 currency pairs, and you choose which currency pair you would like to invest in. Most beginners go with the major currencies since there is always a lot going on in those markets. You can invest any amount, but it is advised to start with a rather small amount since it helps you get an idea of the market at minimized risks.

Is buying foreign currency a good investment?

Buying foreign currency and using trading platforms for foreign exchange help diversify your portfolio. The advantage of starting with any sum makes it accessible to big as well as small traders and gives them a direct role to play in the economy. It helps diversify your portfolio and cuts out the risks associated with the fluctuating economy as they can be spread geographically across international boundaries. The foreign exchange markets have lesser margins than any other trading platform, which makes it more reliable and vast.

How do I get started with forex?

To start working with the foreign exchange market, you should first try and get your hands on a demo account. Until you achieve consistent profits, don’t invest real money. Many people straight up jump into trading without any prior experience and then go into losses. To prevent you from real-time losses, you should try learning about currency hedging strategies and stop losses. But it is advised to practice before you get into the real deal.

How is currency trading done?

Currency trading is all about relative value, and whether one currency is stronger than the other, in the foreign exchange market, you have to sell one currency and buy the other. Currency trading is done in pairs. There are over 70 currency pairs, and you choose which currency pair you would like to invest in. Most beginners go with the major currencies since there is always a lot going on in those markets. You can invest any amount, but it is advised to start with a rather small amount since it helps you get an idea of the market at minimized risks.

What is currency hedging in India?

A foreign exchange market currency hedge is a transaction that is implemented to protect and prevent an existing or anticipated position from falling into losses. Currency hedging is somewhat similar to stop losses. Since the foreign markets very much influence the Indian market, currency hedging helps minimize losses and protects you against exchange-rate volatility which means the tendency of foreign currencies to appreciate and depreciate. RBI has now made currency hedging in India compulsory.

Currency Trading Blogs

Different Strategies for Currency Trading in India

A trading strategy is the set of parameters based on back-tested analysis to enter or exit the currency pair as per the market conditions. Market veterans have developed a plethora of successful strategies to make consistent profits. There are a few important characteristics that distinguish a profit yielding strategy from others. Such a strategy will help in understanding the type of currency to trade in, the size of each position, the entry and exit points, and relevant techniques for the execution.  In this blog, we have compiled several productive strategies that can aid you in making real prof....

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Benefits of Currency Trading in India

Currency or forex trading is the most heavily traded markets in the world with volumes standing at $5 trillion a day, much more than that traded on NYSE. In India, this market is on the rise with daily transactions increasing exponentially. Earlier, there were only big tickets players like banks, institutional investors trading heavily in this market. However, with the advent of derivative products, even retail participants can leverage this opportunistic market. Here are some major benefits for entering this market in India: Lower margin requirements: Unlike equity markets, Currency trading allo....

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Detailed information about currency trading basics in India

Currency trading, also known as Forex Trading, is the most preferred investment option other than the regular salary income. Investors, who indulge in investing in stocks, bonds and mutual funds, including currency trading, are witnessing good returns lately. Currently, the global currency trading is quite bigger compared to other income options, including stocks. More than the US $4 trillion in currencies are traded every single day, including the electronic trading platforms. Before getting into this trading, one should know that currency prices are not just affected mainly by political and economic c....

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Disclaimer The information contained in this file is provided for informational purposes only, and should not be construed as legal advice on any matter. The content and interpretation of the law addressed herein is subject to revision. We disclaim all liability in respect to actions taken or not taken based on any or all the contents of this file to the fullest extent permitted by law. Every effort is made to avoid errors. In spite of that, errors and discrepancies may creep in. It is expressly stated that neither Findoc Investmart Private Limited nor any of the contributors of updates will be responsible for any damage to anybody on the basis of this document. Readers are, therefore, requested to cross check with the original sources e.g. Government publications, Orders, Judgments etc., before taking any action or making any decision. These services are being provided through our group companies Findoc Capital Mart Pvt Ltd and Findoc Finvest Private Limited