Currency trading involves purchasing one currency while simultaneously selling another. The goal is to profit from movements in international exchange rates.
Currency prices are highly volatile and can be affected by a variety of economic and political conditions. Some of the most important factors include: Interest rates, International trade, Inflation, Political stability.
Currency trading in India takes place in the foreign exchange market, which is open 24 hours a day, 5 days a week. However, the Reserve Bank of India is only operational Monday to Friday, from 9 AM to 5 PM.
To trade in the live currency market, you need to open a trading account with a broker. You may not need to open a demat account.
There are five types of currency markets in India: Spot market, Forward market, Swap market, Options market, Futures market.
- Trade across futures, options
- Small Margin requirements
- Controlled Regulation
- Diversification of portfolio
- Hedge against risk
- Invest, Trade, Hedge, Speculate