Forex online market allows traders to trade 24/5 and helps them to make a profit.
Forex trading was first introduced in 1971 when global trade shifted from fixed exchange rates to floating ones.
The idea was criticized earlier, but now every third person in the world trades with the Forex.
What Is Forex Trading Concept
Online Forex Market is a concept; everyone should understand that the market holds a lot of capital and opportunities along with it. If understood well, one can easily earn millions through trading.
Online Forex Market is a place where currency flows; the profit or loss cut depends on the country’s situation.
Online Forex market runs based on environmental, political and other issues of the country.
We have created this webpage for every forex traders who desire to trade or understand the concept of online forex trading. Many people in India is unaware of online forex online Market.
This blog will discuss what Forex Trading Is and will try to clear every possible query regarding online forex trading.
Forex Trading is also called Currency Trading because, in Forex Trading, one country’s currency is bought and sold in exchange for one country’s money.
All the world countries have a currency like India’s rupee, US dollar, Japan’s yen, UK pound etc. They all have a less based price based on Demand And Supply in the market; often, you have news.
I must have heard that today the rupee has fallen by 0.40 paise, today the rupee has increased by 0.50 paise.
When the rupee is more or less, some people buy it at a lower price and sell it when it is more, and it is called forex trading or currency trading.
Forex Market is the largest market in the world, with more than 6 trillion dollars traded daily.
What Is Forex Trading and How To Start Forex Trading In India
Many people ask if currency trading is allowed in India, then the answer is, “Yes, it is legal to do currency trading in India.”
Still, only 4 Currency Trading Pairs can be traded in India, and these are four Currency Trading Pairs. USD / INR, EUR / INR, GBP / INR JPY / INR.
In these, the rupee of India is traded with the currency of other countries.
Apart from these, there are three more Cross Currency Pairs on which trading has started recently, and they are three cross currency pairs.
EURO / USD, GBP / USD, USD / JPY, but they do not have much volume, and a lot of stockbrokers have just Has not even started Cross Currency Trading.
The currency of other countries is traded among themselves in cross currency pairs.
Currency trading in India mainly involves the NSE (National Stock Exchange). To do Forex Trading, any Stock Broker has to open a Trading Account, and Forex Trading can be started by adding money to it.
Now knowing when the Forex Market Open takes place in India, Forex Trading can be done from 9 am to 5 pm, Monday to Friday. Forex Market Time is higher than the equity market.
Currency Trading In India
Currency trading in India is conducted in the Futures and Option Market.
This means the currency contract has to be bought and sold before a particular expiry; the currency contract cannot be bought or sold in the number as per your choice; instead, these currency contracts are bought and sold in a predetermined lot size.
1 Lot means 1000 Units, and at least one 1 Lot has to make a minimum purchase. If you want to buy more than 1 Lot, you can buy one time.
For example, if you want to purchase 1000 Dollars, you will buy 1 Lot USD / INR because 1 Lot has 1000 Dollars, and to buy 2000 Dollars, you have to buy 2 Lot.
In Online Forex Trading, you do not have to pay the entire money to buy 1 Lot of currency; instead, the broker provides margin.
Margin is a loan that a stockbroker gives you for trading, and after trading, that money needs to be paid back to the broker. is.
1 Lot of Forex has 1000 Units, and if you buy without margin, then thousands of rupees will be required such as Currently, 1 US Dollar is worth 70 rupees, and to buy 1000 $ will need 70 * 1000 = 70000 rupees, but the broker’s margin Due to giving, it can be purchased for very few rupees.
One lot of currency can be purchased at this price (Price As of March 2020)
- USD / INR 1 Lot Price = 1470 Rs
- EUR / INR 1 Lot Price = 1880 Rs
- GBP / INR 1 Lot Price = 2350 Rs
- JPY / INR 1 Lot Price = 2520 Rs
Suppose the price of USD / INR is running at 70 rupees and you buy one lot of USD / INR for which you have to pay about 1470 rupees, and after some time, the price of USD / INR becomes 70.50, then it is sold back. You will get Rs 1970 so that you will earn a profit of Rs 1970-1470 = Rs 500.
What to do to earn money from Forex Trading
- Open Trading Account With Discount Broker
- Learn Currency Trading Basics
- Learn Forex Trading Technical Analysis
- Do Proper Money Management and Maintain Risk to Reward Ratio
Is Currency Trading Profitable In India
Predicting Forex Market is very volatile; it is not an easy task. To earn profit from online Forex Trading, it is necessary to have Forex Trading Basic Knowledge, besides all the reasons that can increase or decrease a currency’s price.
Make sure to use Stop Loss while doing currency trading; stop Loss prevents your Loss from increasing. Money can be earned from currency trading, but it cannot become rich overnight.
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