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Table of contents
- How To Start Forex Trading In India
- Currency and Forex Market Recommendations
- Start Forex Trading With The Most Reliable Platform in India
- A Comprehensive Guide to Currency Market Trading Market in India | Motilal Oswal
So, being an Indian trader, it is also possible to get involved with the Overseas Forex Trading market.
How To Start Forex Trading In India
It is very important to find an authorized broker and use its service for trading purposes. In case the government receives the information about you being involved in foreign exchange within the country, then you will be charged against the law. Nonetheless of you are dealing with international brokers, the Indian government has no authority over international trading services. It includes:. Along with this, Indian traders also have the freedom to invest in equity markets. But therein lies another problem as trading overseas is also illegal as per RBI guidelines.
So, you have to look for some catch that will allow you to bypass the restrictions and get involved in Forex Trading market in India. Nowadays the Forex Market is very big.
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The traders can earn trillions of dollars daily. Just one blink of an eye and a huge amount of currency is transferred from one place to another. In the start, you need to understand the currency pairs and how they work in the market. It is a term which is mainly used in the Foreign Exchange market. Basically, the currency pair gives the relative value of a specific currency unit aligned with another currency unit.
And when you are selling the currency pair, you end up buying the dollar against the Euro. The first occurrence is termed as long position and the later one is termed as a short position in the forex market. You might think that the Foreign Exchange market is very easy to handle. However, it involves a lot of elements and components that are out of hands. When a country is improving its economy regardless of the extremities, the currency of that country becomes strong, hence attract investors from all over the world.
Currency and Forex Market Recommendations
The economic growth impacts the inflation in sustainable resources and other monetary related areas which further increase the interest rate. And the traders solely earn profit from the interest rates. And the cycle continues. Apart from these factors, the forex market is also affected by risks as no one really wants to invest in a heavy risk asset.
Even though Forex Trading is forbidden in India by law, there is no law which regulates the dealings of binary trading. Thus, it is like grace for the traders who want to enter the foreign exchange market. As more and more people are moving forward with the foreign exchange in India, it is used as a viable source of passive income for investors.
Start Forex Trading With The Most Reliable Platform in India
The biggest enticement is that it is easy to learn and have the potential to give big returns. The simplicity of FX is the first thing that attracts potential investors. Even the concept sounds so much interesting that people feel drawn to it. The traders have to follow very few basic steps to get started. Open an IQ Option account and enter the trading world with a small deposit and gradually, you will learn everything about forex. With the same amount, you can place trade orders with Samco. The best part about opening a samco trading account is that the account opening process takes only 5 minutes.
There is no minimum deposit required to open a trading account with Samco. Your broker will provide you an online trading platform or a software through which you can place your orders and start forex trading. Samco launched StockNote, its flagship trading app which is powered by a Giga trading engine. It gives you real time news, insights from the markets and is the best, most reliable trading platform for currency trading in India.
After successfully completing the above steps, you can start trading in the Indian forex markets. As a beginner you should start with smaller amounts and a low leverage. You can refer to the top 10 forex trading tips and the top forex strategies before you start trading in the forex markets. Hedgers use the currency markets to hedge against unfavourable exchange rate movements. Their primary objective is not to make money but to hedge their risk. Hedgers typically include importers, exporters, central banks, banks and corporations.
The primary objective of speculators is to generate profits in the forex markets. They do not carry any foreign exchange risks but simply buy and sell currency derivatives to profit from exchange rate movements. Arbitrageurs are only interested in capitalising on the price differences of the same currency derivative between the three stock exchanges. So, they will buy the derivatives contract at a low rate on one exchange and sell the same at a higher rate on another exchange. Arbitrageurs are quick profit makers and do not hold long positions in the market.
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Every trader has a unique trading style which forms the basis of their investment strategy. Some investors might prefer day trading, while others might prefer scalping. Price action trading strategy involves studying the historical price movement of currencies and deciding the support and resistance levels. This strategy works in all market conditions and across all time frames short,medium and long-term. This is a long term strategy and involves taking positions to benefit from major shifts in currency rates. This strategy takes months to unwind and requires immense patience and discipline.
This strategy is also known as intraday trading strategy and the positions are closed by the end of the trading day. This is a pure short- term technical strategy and does not involve fundamental analysis.
Scalp trading involves buying and selling currency pairs for the smallest pips. Scalp trades last anywhere between 30 seconds to 1 minute. The trader needs to be glued to the screen at all times to take advantage of the smallest currency movement. Currency trading is a unique market wherein all kinds of investors can make money.
A Comprehensive Guide to Currency Market Trading Market in India | Motilal Oswal
You can make money scalping, day trading or by taking long-term positions. You can be a fundamental analyst or a technical analyst. All you need to be a successful forex trader is discipline, patience, practice and the right partner. Samco , with more than two decades of experience in forex trading is the perfect trading partner for you. Or log in to complete your existing account opening application. How to Start Currency Trading in India?