FOREX TRADING IN INDIA
Currencies are usually unique to countries like Indian rupee or US dollar. It also known as foreign exchange or currency trading which is a decentralized global market. Forex market is where banks, businesses, governments, investors, and traders come to exchange and speculate on currencies. The purchasing and selling of currency one of the legitimate way to make profit. It is one of the largest financial market in the world. Forex market is opened 24 hrs a day. It is run by a global network of banks and it spread across four major currency trading centres London, New York, Sydney and Tokyo.
What is forex trading?
Forex trading is the purchasing and selling of currency. One currency is bought and sold for another currency. For example, the price of the dollar goes high. You buy the dollar with Indian rupees. When the dollar reaches at a higher values than you purchased, you sell it and make profits.
Forex trading in India
Forex trading is totally legal in India as regulated by SEBI. Currency trading should be done through specified foreign exchange trading platforms and the base currency is INR (Indian Rupees). Currency trading is offered by exchanges like the NSE, Bombay Stock Exchange (BSE), MCX-SX. India currency exchange is opened from 9.00 am to 5.00 pm. Investors having a forex trading account with a broker in the live currency market can invest.
The concept of hard currencies
Hard currencies are currencies that can be freely traded around the world which are backed by strong domestic economies. US Dollar, the Euro, the Pound, and the Japanese Yen are examples of hard currencies. These currencies have worldwide acceptance.
How does the Forex Trading function?
Unlike equity markets, forex trading does not take place on exchanges. It happens directly between two parties, in an over-the-counter (OTC) market. There are 3 types of OTC market namely spot, forward and futures forex markets.
Benefits of forex
Forex is one of the best way to make profit nowadays. Financial independence is the key factor that attracts investors to the world of currency trading. Here are the mains advantage of currency trading.
There is great liquidity in the market as there are always buyers and sellers to purchase and sell foreign currencies.
• 24-hour Trading
Forex trading is open 24 hrs. This market is open throughout day and night as somewhere in the world, there must be this buy and sell trading is going on.
There is high leverage in currency trading. It provides the investors the opportunity of trading currencies with greater volume. Even with a small amount of money, using leverage, traders can make large profit.