Friday, 16 December 2016

Currency Trading Basic Information (Forex Market)

Currency Market (Forex Market) Trading Basic Information which is very helpful to Enter in this Financial Market World. Part I


Before start  Trading market we all are know about the background of Market.
  • HOW?
  • WHY?
  • WHEN?

In India Financial Market is Very Strong and its divided in 3 Major Market .
  •       Equity Market
  •       Commodity Market
  •       Forex Market or  Currency Market







This Market Established and start in INDIA dated  29th Aug 2008 under the regulatory control of Securities and Exchange Board of India (SEBI) and Reserve Bank of India (RBI). NSE & MCX-SX are the major two exchanges presently.  Before that only the Banker are traded in this Market.

     















In terms of daily turnover Indian is the 16th largest market in the world. As per the latest RBI data, daily FX Indian market volume is more than $50 billion.

Actually  Forex Market it is very similar to any other financial market where currencies are traded against each other. Currencies are bought & sold against one another for. E.g. USD, EUR, GBP, JPY



Daily global turnover is around $ 5000,000,000,000 Approx.

How to trade in Forex?
Currency Market offers Indian investors a step into the world of Forex

§  Investors can now trade in four pairs of currency, which are followed, in the Indian exchanges.

  Underlying
  Rate
  USDINR
  67.3000
  EURINR
  71.5000
  GBPINR
  85.1000
  JPYINR
  58.5000

USD INR (1 LOT= 1000USD) Market Value Approx 67,000/- and for trading marginal amount required is 2000/- approx for 1 Lot.

If you think to earn constant profit in this Market?
Then no worry our first focus is catch the movement in market, this is very volatile market so we require only 3 Paisa movement to earn good profit in daily as well as long term basis. 

Likewise the invest or we can say the Margin Money require for Trading.
Lot size
No of currencies
Market price*
In  `
Actual Trading Deposit*
In  `
1 paisa
Movement  `
3 paisa
Movement  `
10 paisa
Movement  `
1
1,000
46,000
2,000
10
30
100
2
2,000
1,34,000
4,000
20
60
200
5
5,000
3,35,000
10,000
50
150
500
10
10,000
6,70,000
20,000
100
300
1,000
100
1,00,000
67,00,000
2,00,000
1,000
3000
10,000
1000
10,00,000
6,70,00000
20,00,000
10,000
30000
1,00,000



NOTE: In My next Blog, I will tell you about Currency or Forex  Segment and Contract notes. Which is very helpful while during first Trade. 


Thank You, 















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