Invest in  

• US DOLLARS
• JAPANESE YEN
• EURO
• GREAT BRITAIN POUND

Trading currency means exchanging the denominations of currencies of specified nations (e.g. US Dollar, Euro, Yen, Yuan etc.) on international platform. It incorporates all parts of purchasing, selling and trading monetary standards at current or decided costs. As far as trading volume, it is by a long shot the biggest market on the planet.

Forex trading requires assembling different components to plan a trading strategy that works for you. The major ones are Price Action and Range Trading strategies. Price action strategy includes the investigation of verifiable prices to define specialized trading strategies. Price action can be utilized as an independent method or related to a marker. Details are only sporadically utilized. Alternately Range trading strategy incorporates recognizing backing focuses whereby traders will put trades around these key levels.

An exchange rate is a cost paid for one currency in exchange for another. It is this sort of exchange that drives the Forex market. There are 180 various types of legitimate monetary standards on the planet. Notwithstanding, most global Forex exchanges and instalments are made utilizing the U.S. dollar, British pound, Japanese yen, and the Euro. Other well-known currency trading instruments incorporate the Australian dollar, Swiss franc, Canadian dollar, and New Zealand dollar.

Currency Derivatives are very efficient risk management instruments and you can derive the below benefits:

• Hedging: You can protect your foreign exchange exposure in business and hedge potential losses by taking appropriate positions in the same. For e.g. If you are an importer, and have USD payments to make at a future date, you can hedge your foreign exchange exposure by buying USDINR and fixing your pay out rate today. You would hedge if you were of the view that USDINR was going to depreciate. Similarly, it would give hedging opportunities to Exporters to hedge their future receivables, Borrowers to hedge foreign currency (FCY) loans for interest and principal payments, Resident Indians, who can hedge their offshore investments.
• Speculation: You can speculate on the short-term movement of the markets by using Currency Futures. For e.g. If you expect oil prices to rise and impact India’s import bill, you would buy USDINR in expectation that the INR would depreciate. Alternatively, if you believed that strong exports from the IT sector, combined with strong FII flows will translate to INR appreciation you would sell USDINR.
• Arbitrage: You can make profits by taking advantage of the exchange rates of the currency in different markets and different exchanges.
• Leverage:You can trade in the currency derivatives by just paying a % value called the margin amount instead of the full traded value.

Currency Futures contracts are legally binding agreement to buy or sell a financial instrument sometime in future at an agreed price. Currency Future contracts are standardized in terms of lots and delivery time. The only variable is the price, which is discovered by the market. Currency Futures contracts have different expiry validity and will expire after the completion of the specified tenure.

The first thing to remember is that in currency trading, the trade is always between a pair of currencies. Unlike in equity or stock market where you buy a share of one company, currency trading in India will involve taking a position on a currency pair.

For instance, the EUR/USD rate represents the number of US dollar one Euro can buy. If you think the Euro will increase in value against the US dollar, you buy Euros with US dollars.

When the exchange rate rises, you sell the Euros back, and you cash in your profit.

To be a successful currency trader, you have to get your basics, goals and risk management right. Here is a list of things you should remember:

• Understand your trading style – Every currency trader has a trading style. This is aligned to the trader’s risk profile. Understand yourself properly before doing trades regularly.
• Choose the right broker and platform – Having a good broker in currency trading is important for success. A good broker will handhold you when it comes to forex trading in India, and ensure you are updated about live currency market news,
• Know your limits – Before you do any currency trade, specify the entry and exit points for the trade. No trade is a sure-shot guarantee and so be prepared to double down or exit when the situation is unfavourable. A good idea about the possible trade scenarios will help you a lot. Keep your losses small.