A Beginner's Guide to Forex Trading in  India

Forex Trading

Forex trading is the conversion of one currency into another for profit. It carries around $6.6 trillion worth of transactions every day.

Features

Exposure to a large & global market. Low transaction charges. Highly liquid

Who Regulates It?

The Forex market is regulated by both SEBI & RBI.

Who Can Trade?

Governments & central banks Commercial banks Companies Brokerage firms Hedge funds Retail forex traders Speculators

Currencies Traded in India

Indian Rupee (INR) US Dollar (USD) Euro (EUR) Japanese Yen (JPY) Great Britain Pound(GBP)

Currency Pairs

It means buying & selling two currencies. Permitted currencies are USD/INR, EUR/INR, JPY/INR, GBP/INR, EUR/USD, GBP/USD, & USD/JPY.

Base Currency & Quote Currency

The first listed currency of a currency pair is called the base currency, & the second currency is called the quote currency.

Where do Currency Trades Occur?

In India, currency trading occurs through the derivatives segment. Currency F&O is traded on exchanges like the NSE, BSE, & the MCX-SX.

How to Trade?

Open a Currency Trading Account  Submit KYC Documents Choose a Currency Pair Read the Quote Pick a Position

Risks Involved

Interest Rate Risk Transaction Risk Country Risk Leverage Risk