Procedure of currency trading in India
What is currency trading?
Currency trading means buying and selling the value of one currency against the other currency like we can buy one dollar in India at rate of around Rupees 54.26 and pound at Rs 84.50 as on 6th May, 2013.
When was it started ?
Although stocks trading and commodity trading is allowed in India from the 19th century but currency trading was made legal in India in October, 2008.
Which currency pairs can i trade ?
In India, only these four currency pairs can be traded and are legal.
USDINR, JPYINR , GBPINR , EURINR
What are the currency trading hours in India ?
Unlike commodity or stocks trading, currency trading hours are Monday to Friday and the timing is 9 AM to 5 AM.
How can i trade?
You don't have to go anywhere,you just have to get you trading Account open from any of the stock broker company in India.
Just sit back and watch the rates on your trading platform or on NSE INDIA's website and you can buy and sell the currency either by calling your broker on phone or by using online platform provided by that company.
How much money do i have to deposit in my trading A/c ?
Minimum : Rupees 2500 is enough to get started
Maximum : there is no limit
Who Fluctuate the Rates in the market
There are many reasons for the fluctuation of rates such as demand and supply factor,Market speculation.
What are the rules ?
* Minimum quantity for trading any currency is 1000 means you trade 54*1000 = 54000 Rs in a single deal but you don't need to have 54000 Rs in your A/c,just 2500 Rupees are enough to make deals.
* You can hold the open position till its expiry and the expiry is on every month's last Friday.
*You can make money both ways,either by buying or by short selling as mentioned in shares trading procedure.
What are the risks ?
There is no such physical risk, there can be a financial risk but if you trade with proper research then you can earn profits regularly.money can be lost depending upon the market factors and rates fluctuation.
How can i get more knowledge of financial market of india
by reading more and more articles online about trading and watching TV channels like CNBC AWAAZ, ZEE business and NDTV profits, you can increase your knowledge in financial market.
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