Which currency trading is legal in India?
Only trading in currency pairs that involve the Indian Rupee (INR) is legal in India. Permitted pairs include USD/INR, EUR/INR, GBP/INR, and JPY/INR, as well as cross-currency pairs EUR/USD, GBP/USD, and USD/JPY.
How do you trade in currency?
You can trade currency in India or invest in currency through authorised brokers registered with SEBI. You need a trading account and a margin deposit to start trading legal currency pairs on recognized exchanges like NSE and BSE.
What is Currency Trading?
Currency trading, or forex trading, involves buying and selling currencies in the global market to profit from changes in exchange rates.
What is a Currency Pair?
A currency pair is the quotation of two different currencies, with the value of one currency being quoted against the other. For example, USD/INR shows how much one USD is worth in INR.
What are the basic requirements of currency trading?
Basic requirements for currency trading in India include having a trading account with a SEBI-registered broker, a margin deposit, and knowledge of permitted currency pairs.
What are Foreign Exchange Markets?
Foreign exchange markets (forex) are global decentralised markets where currencies are traded. It is the largest financial market in the world, allowing traders to buy, sell, exchange, and speculate on currencies.
Do I need to open a Demat account for online currency trading?
No, you do not need a Demat account for currency trading. You only need a trading account with a SEBI-registered broker.
What is the margin required while trading in currency?
The margin required for currency trading varies by broker and currency pair, but it generally ranges from 2% to 5% of the total trade value.
What is the lot size in currency trading?
The standard lot size in currency exchange trading is usually 1,000 units of the base currency for mini lots and 100,000 units for standard lots.
What is the difference between trading currency futures and spot FX trading?
Trading currency futures involves contracts to buy or sell a currency at a future date at a predetermined price, while spot FX trading involves the immediate exchange of currencies at the current market rate.