4 Things To Know About Forex Trading In India - India West
4 Things To Know About Forex Trading In India - India West |
4 Things To Know About Forex Trading In India - India West Posted: 27 Apr 2021 04:44 PM PDT Even though many people in India are pretty knowledgeable on equity and stock trading, still, they might not be very familiar with the lucrative forex trading. If you also don't know about forex trading, also referred to as currency trading, today's your lucky day. In this guide, you'll be taking a look at all the essential things you need to know about it if you're interested in venturing into this high-potential market. Learning the essential fundamentals about forex trading in India is vital as this ensures you don't suffer massive amounts of losses. Therefore, waste no more time and see the essential things you should learn about India's currency trading before risking your hard-earned money. ![]() (image provided) 1. Is Forex Trading Legal In India? Before you even get any further in your currency trading journey, it's vital to first confirm that this type of trading is legal. Fortunately, forex trading in India is legal. Therefore, you shouldn't fear opening an account since forex trading is regulated by the Reserve Bank of India (RBI) and protected by the Securities Exchange Board of India (SEBI). However, forex trading is only legal when the Indian Rupee is the base currency and through specific foreign exchange trading platforms, such as ForexToStocks. In contrast, forex trading done through the Internet or electronic trading is forbidden by a circular issued by RBI. Currency trading in India is only possible when benchmarking currency pairs against the Indian Rupee. This move by the Indian government was put in place since the Indian Rupee is weak when paired against the dollar. Therefore, you're only required to buy the USD from the India's Central Bank. Apart from the USD and INR, other currency pairs that are allowed are the Euro and INR, as well as UK Pounds and INR. 2. Forex Brokers When trading in the forex market in India, you don't enjoy as much flexibility as you would have in some of the countries. This is because you're only allowed to participate in the currency market after investing through a certified broker. Therefore, it's essential that you first do your research before deciding whether to choose a specific broker to avoid any legal implications. When choosing a forex broker, it's recommended that you always go for one who's listed at the Securities Exchange Board of India or SEBI. Otherwise, using a trading platform that isn't registered at this government body is illegal. 3. What Are The Drivers Of The Forex Market? Exchange rates usually change often, and this is caused by the fluctuation in the values of currencies. It's the traders in the market in the currency market when selling, buying, and exchanging currencies who determine the value of a particular currency over another, thereby determining the exchange rate. Other drivers cause a change in currency prices, and these include global news and events. Because of this, you should always have your eyes on the prompts being released on currency intervention, natural disasters, monetary policy, political and economic stability, or other similar events. Doing this is advised as such information will impact the direction at which the forex market will move. 4. Forex Trading Strategies In India To succeed as a forex trader in India, learning several forex trading strategies is a must. Because there are numerous trading strategies to choose from, it can be quite overwhelming to know which one works best for you. To increase your chances of success, you should only pick a handful of strategies and perfect them. Here are some of the best forex trading strategies many Indian forex traders use to a great effect:
Takeaway While forex trading is the most liquid and largest market global marketplace, it's yet to take roots well in India. As a result, many investors are still coy about whether or not to try their luck in the profitable foreign exchange market. If you're an investor willing to learn about forex trading in India, but didn't know where to start, this detailed post has outlined all the essential details you need to know. (guest article) |
You are subscribed to email updates from "forex trading platforms" - Google News. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States |
Comments
Post a Comment