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ALL REVIEWS. Highest-rated brokers. Interactive Brokers review. DEGIRO review. Saxo Bank review. XTB review. Charles Schwab review. TD Ameritrade review. eToro review. You can easily gain access to the transaction details and the price. Since most top-rated online Forex brokers offer several currency pairs, you can easily decide which currency pair you would like to trade.

Right at the beginning, you should implement risk management techniques. We suggest that you first gain a thorough understanding of the price volatility associated with your selected currency pair. We discussed the different ways to trade Forex in the above section. Forex brokers offer all or more of the above-mentioned types of trading.

The amount you have to invest depends on the type of trade you select. Once of the currencies in your currency pair is a base currency and the other is a quote currency. The currency to the left is the base currency and the currency to the right is the quote currency.

If you feel that the base currency will become more valuable than the quote currency, you have to buy. If you feel that the value of the base currency will fall, you have to sell.

You can also add orders to your trade. These orders include limit orders and stop orders, which help you to minimize risks and lock in profits whenever your loss or profit targets have been met.

You do not have to add orders to your trade, but experts highly recommend that you do in order to minimize your risks and protect your profits from market volatility. Stop loss orders enable you to exit a trade automatically if the price worsens and thus minimize your loss.

Limit orders enable you to exit trades automatically if the price gets better and thus lock in your profits. To close your trade, you have to perform an action that is opposite to the action you performed while opening the trade. For example, if you opened a trade by purchasing three CFDs, you have to sell three CFDs to close it.

When you close your trade, your profit and loss will immediately reflect in your balance. To get started with Forex trading, you must sign up with an online Forex broker. If you are a beginner to Forex trading in India, you will find it very difficult to identify a reputed online Forex broker on your own.

This is where we can help you. It can be concluded as a major observation that major trading sessions in Forex are directly interconnected with market hours. Being a market with high liquidity, the chances to earn a profit is as slim as suffering a loss not only in India but anywhere in the whole wide world.

With the right skill set and command over the fundamentals, one needs to learn all the tricks of this trade. Gambling is where you essentially and categorically depend on pure luck! Going by this standard, Forex trading cannot be considered gambling. It is a high risk-based process, where a trader tries to earn a profit by predicting the movement of the market. As mentioned earlier, only the following currency pairs can be traded in India -.

Section 13 of the FEMA states that the punishments in the contravention of the Act can result in the penalties as well as imprisonment under the Act.

General Legal. What Is Forex Trading and how to trade forex in India? Seeking answers to what is currency trading in India? Or confused about how to carry forex trading legally in India? Well, foreign exchange is the largest decentralized global market where every currency in the world is traded. Currency trading in India is the most fluid market in the world, however, the legal status of forex trading in India is still a large question and the majority do not know the answer. So, here we give you an insight into forex currency trading in India through our blog.

Written by: Antim Amlan. Published on Sep What Is Forex Trading? How is Forex Trading done in India? Table of content: What is Forex? What is Currency Trading? Why do we have Exchange Traded Currency Derivatives? Is Forex Trading In India Legal?

Strategies for Forex Trading in India Who is eligible to trade in Currency Futures markets in India? Frequently Asked Questions What is Forex? How does the Forex Trading function?

Further, currency pairs can be branched into the following categories: Major pairs - Highly traded. Strategies for Forex Trading in India Given its liquidity in terms of daily trading volume, losing money is easier than actually making it.

Following are some of the strategies generally employed to the cause - Price Action Strategy - The price action strategy is the most commonly employed strategy for Forex trading. Who is eligible to trade in Currency Futures markets in India? Cross Currency Exchange As mentioned earlier, the Securities and Exchange Board of India SEBI has launched cross-currency futures.

Indian Forex Market The foreign exchange market came into existence in India by as late as when the banks were granted permission to undertake trading in currencies by the RBI. Time Zones Following chart can be referred to understand the time-zone division of the Foreign Exchange Market abbreviated as a Forex market: Forex Trading centers in the world Trading hours in local time Forex Oceania-Asia session Wellington, New Zealand Sydney, Australia Tokyo, Japan Hong Kong, China Shanghai, China Singapore, Singapore India Moscow, Russia Forex Europe session Frankfurt, Germany Zurich, Switzerland Paris, France London, United Kingdom Johannesburg, South Africa Forex Americas session New York, United States Toronto, Canada Chicago, United States Even though a hour market offers a substantial advantage for many individual and institutional traders, it is not deprived of certain pitfalls.

Frequently Asked Questions: Is Forex trading profitable in India? Where can I trade forex in India? You can legally trade forex within Indian Exchanges like BSE, NSE, MCX-SX. Is Forex trading just gambling? Which currency pairs can be traded in India?

As mentioned earlier, only the following currency pairs can be traded in India - Rupee-dollar Rupee-pound Rupee-yen Rupee-euro Euro-dollar Pound-dollar Yen-dollar What if I want to trade the FX markets with international brokers? Trading the FX markets with international brokers is illegal. What is punishment for forex trading in India? The 11 Fundamental Duties of Indian Citizens As per the Constitution of India, there are 11 Fundamental Duties of Indian Citizens which are non-enforceable in the court of law.

Prachi Darji. What is a Writ Petition? How do you file one in Court? Writ Petition is an order given by the High Court to a lower court directing them to act or stop acting in a certain way. The article talks about Writ Petition, the types of writ petition, how to file a writ petition in court and the format of each writ.

Prostitution in India Prostitution in India is legal under the Immoral Traffic Act but its related activities such as owning a brothel, child prostitution, etc have made it illegal. Is Weed or Marijuana Legal in India?

Forex trading or currency trading has become popular across the world during the recent years, and India is no exception either. Although the sector is still familiar in this country, more and more Indians are getting into trading. However, the problem is that most people are not aware of the rules and regulations regarding forex trading in India. They do not know if forex is legal, or how to trade forex in India , which makes them face severe consequences.

To put it simply, forex trading stands for purchasing and selling currencies. Not only it involves many people but also many currencies. Since a trader is always purchasing a currency by using another currency, they are ultimately trading currency pairs. You may trade major currency pairs, cross currency pairs, or exotic currency pairs. In any financial market, long is the position where you own something, betting that its price will rise. In FX, every currency trade is both a long and a short—you are always selling one currency and buying another.

For example, if you go long EURUSD, you own euros and owe dollars, hoping that the euro will go up against the dollar. If you are short EURUSD, you make money when the euro goes down. When you cover a position, you are said to be flat or square. This is called the roll. Yes, it is. You can trade forex legally in India. However, there are not many options and opportunities for Indian traders like some other countries.

Moreover, traders need to follow a lot of strict rules and regulations to avoid legal complications. If you want to trade forex legally in India, then there are certain factors that you need to acknowledge, including the legal currencies and regulated brokers. At the same time, you must follow the SEBI, RBI, and FEMA guidelines. So, before you start trading, make sure to learn the rules and guidelines first by visiting the authorised websites.

The Securities and Exchange Board of India SEBI is the regulatory body for commodity and securities market in India. The organisation operates under the jurisdiction of the Ministry of Finance, Government of India. Founded on April 12, , it was given statutory powers through the SEBI Act on January 30, According to the guidelines of SEBI, forex traders residing in India are not allowed to trade any currency pairs that do not have INR as the base or quote currency, only except the three cross currencies.

The INR is not only the official currency of India but it is also the legal tender in this country. So, as long as you are in India, it is illegal to transact in any other currency. Under the FEMA act, Indians cannot send the INR outside the country either to make investments or fulfil the purpose of currency conversions.

To send the Indian Rupee to any overseas country, you must be approved by the Indian Government. Hence, the conversion of the INR to USD for forex trading is an illegal activity that can earn you a severe penalty along with prison. SEBI also imposes some restrictions on types of trading, maximum available leverage, and rules involving exotic currency pairs. The Reserve Bank of India RBI is the central bank and regulatory body of India that operates under the jurisdiction of the Ministry of Finance, Government of India.

It was founded in Along with several other responsibilities like regulating the Indian banking system, the primary duty of the RBI is to supervise the issue and supply of the Indian Rupee. This is what makes it involved with forex trading, because trading actively leaves some impact on the value of the Indian Rupee. Assume that as a trader, you want to purchase a currency with USD.

Now, when you pay for the foreign currency from your INR bank account, the RBI has to pay on your behalf from its USD reserves. While it is our responsibility to protect our foreign reserves and strengthen the value of the INR, these kinds of activities can do the exact opposite. Earlier, there were not many regulations over trading, but as Indian reserves failed; the FEMA Act came into existence. The RBI played an important role in coming up with the guidelines of the FEMA Act. You cannot trade just any currency pair in India.

There are only seven currency pairs that are allowed for trading in this country, made of four different currencies. Earlier, it was decided that currency pairs with INR as the base currency would only be allowed. Therefore, the allowed currency pairs were USDINR, EURINR, JPYINR, and GBPINR. However, three cross currency pairs were added later. To the contrary of what is stated earlier about cross pairs, the definition is different when it comes to India. Here, cross pairs stand for currency pairs without INR.

The three pairs added later are EURUSD, GBPUSD, and USDJPY. Keep in mind that you cannot facilitate forex trading on any offshore exchange.

It can only be done by the Indian stock exchanges, such as the Bombay Stock Exchange BSE , National Stock Exchange NSE , and Metropolitan Stock Exchange of India Ltd. You should also learn about the lot size before you start trading, the lot size for USDINR, GBPINR, and EURINR is 1, units.

However, it is , units for JPYINR. The Indian currency market is supervised and regulated by the Reserve Bank of India RBI and the Securities and Exchange Board of India SEBI jointly. If you want to trade in India legally, then the only way to do so is trading through one of the forex brokers that are regulated by SEBI. Offshore brokers that offer trading services to Indian clients are not aware of the rules in this country or they simply do not care about the regulations. So, you cannot rely on them.

SEBI regulated brokers include Alpari, HotForex, FP Markets, Axiory, FXTM, FBS, AvaTrade, and XM. Keep in mind that binary trading is not allowed in India. So, if you must choose an offshore broker, make sure that it does not offer binary trading services. However, it is recommended to stick to Indian brokers. Once you find the right broker, here is what you must do —. The reason why you must practice on a demo account first is because you can trade with virtual cash in this account.

So, if you are a beginner or want to test a new trading strategy, you can do it here without the risk of losing money. Always remember that forex trading is full of risks. Yes, there are indeed opportunities to generate income, but that comes with high risks of losing your money. Getting involved in illegal activities only increases the risks as your forex holdings can also be confiscated by the Indian Government as a penalty. So, make sure to follow the SEBI and the RBI guidelines if you want to trade forex in India.

What is Forex Trading? Long and Short Currencies In any financial market, long is the position where you own something, betting that its price will rise.

Is It Legal to Trade Forex in India? Guidelines of the SEBI for Indian Forex Traders The Securities and Exchange Board of India SEBI is the regulatory body for commodity and securities market in India. The Role of the RBI in Forex Trading in India The Reserve Bank of India RBI is the central bank and regulatory body of India that operates under the jurisdiction of the Ministry of Finance, Government of India.

Legal Currency Pairs in India You cannot trade just any currency pair in India. Forex Brokers to Trade in India If you want to trade in India legally, then the only way to do so is trading through one of the forex brokers that are regulated by SEBI.

Once you find the right broker, here is what you must do — Visit the official site of the broker and register with it to open a trading account. Verify your trading account with ID verification and address verification by submitting necessary documents. In India, you also need to complete the KYC Know Your Customer process to activate the account. Open a demo account at the same time and practice demo trading with virtual cash in this risk-free environment. Once you gather enough skills and experience about trading, deposit funds in your trading account and start trading.

Conclusion Always remember that forex trading is full of risks.

The amount of strategies out there can become overwhelming though, so we suggest starting by familiarizing yourself with the most successful forex trading strategies first and foremost to help you stay focused. Indian foreign exchange market as it exists today is well structured and conducted in a regulated-fashion by the RBI. If you think the value of USD will rise within the next couple of hours, you could buy , units of USD. Further, Pepperstone does charge forex and non-trading fees, but these are low in comparison to competitive brokers in India. TD Ameritrade review.

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