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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