Why Forex ?

What is currency trading account A forex account is one that holds deposits in one or more currencies for trading. These trades are based on the movement of the foreign exchange market. With this type of account, you can now unlock vast and potentially significant returns from global markets. These and other factors draw investors to forex trading. What is Forex trading? Before we discuss the various advantages of a FOREX trading account, let’s understand FOREX trading in detail. FOREX, the word is a portmanteau, a blend of the words foreign currency and exchange, and self-explanatory. In FOREX, you trade in the currency market, which is the largest market in the world. The daily estimated trading volume is USD 6 trillion, spread over different hotspots around the world and remains active for 24 hours. FOREX trading is unlike the stock or commodity market. In FOREX, traders trade currency pairs in the direction of the market. Unlike buying stocks, when you trade in currencies, you are simultaneously buying one currency and selling the other. And, you don’t need a DEMAT account for currency trading, as there is no delivery of currency involved. Most trades in the currency market are cash-settled. For online FOREX trading, you only need a currency trading account. If you are wondering, forex trading can add diversity to your portfolio and let your investment exercise better. The market remains open for 24*7 involves a variety of players from government, banks, institutional investors, travelers, corporations, and amateur traders. However, the forex market is decentralized. The market operates in different locations like London, Singapore, Tokyo, or New York. To participate in the market abroad, you would need a broker with an international reach.

What Are The Basics Of FOREX Trading?

Currencies are always traded in pairs. You can trade in currency derivatives in the Indian bourses. Futures in four currency pairs and F&O in three cross-currency pairs (EUR-USD, GBP-USD, and USD-JPY) are available for trading in the Indian exchanges. To trade in foreign currencies, you will have to start by opening a currency trading account. Here are the steps involved in that, Open a trading account with a reputed broker with a proven record in the market Complete the KYC process to make the account functional The broker will ask you to deposit the required margin to start trading Request requisite access credentials from your broker Currency trading market is highly dynamic, and the introduction of online forex trading has made it even more agile. FOREX traders are now equipped with highly sophisticated software to trade within seconds of a trading opportunity. It can be a little difficult for a new trader to get the hang of it at the beginning. So, if you are planning to trade in the currency market, here are a few tips that can be the ice breaker. Understand the trading style. The FOREX market behaves differently from the others, and hence, you will have to develop a sense of trading in the currency market Don’t try to trade in all available currency pairs. Follow one or two currencies like the US Dollar or British Pound to develop a trading strategy Successful currency trading is all about trading with sense, effective risk management while having a clear sight of your goal Know your limits – plan entry and exit carefully. No trade is a sure shot, so you will have to judge your risk appetite well before trading. A clear idea of the market will help you set your expectations right and losses small