Know all about Forex Trading andonline Currency Trading in India

ForexForex orForeign Exchange or Currency Trading is a global market where currencies of different countries are bought and sold. This market is the largest and the most liquid globally, also one of the most important as without currency exchange, we cannot conduct international business. To trade in forex, you need to strategise where a currency is heading and trade via exchanges like the Bombay Stock Exchange and National Stock Exchange. 

Following are thesignificant points you need to know about Forex Trade online andCurrency Market in India

  1. Currency Pair: Currencies are traded in pairs, for example, USD/INR or JPY/INR. There are three types of currency pairs:
    1. Pairs that involve USD – major pairs, for example, USD/INR
    2. Some pairs do not include USD, but they peg major currencies against each other – minor pairs, for instance, INR/GBP.
    3. Pairs that have one primary currency paired with a minor one – exotic pairs, for example, USD/HKD 
  1. Markets: Forex gets traded in the Cash and DerivativeMarkets so that investors can trade Forwards, Futures, Currency Swaps, and Options.
  1. Reasons for trading: Usually, investors invest in forex to hedge against international currencies by speculating on geopolitical events. Such investors may also want to diversify their portfolios.
  1. Base and quote currency: The currency mentioned first is the base currency in the currency pair, and the other is called Quote Currency. The value of a base currency is one, and it indicates the amount of quote currency required to buy a unit of the base currency. For example, if you are trading in USD/INR, USD is the base currency, and INR is the quote currency. 
  1. Buy & sell: If you buy a currency pair, the base currency appreciates and vice versa. 
  1. Bid and ask price: The price at which the base currency is bought is called the Big Price, and the price it is sold at is called the Ask Price. For example, if USD/INR is quoted at Rs. 65.67/65.61, then the Bid Price to buy 1 USD is Rs. 65.67, and the Ask Price to sell 1 USD is Rs. 65.61. The difference between the Ask and Bid Price is called Spread. 
  1. Lots: Currency Trading happens in lots and has three major types of lots: micro (1k units), mini (10k units), and standard (1 lakh units). 

Read Also : How To Enhance Your Followers’ Rate Organically?

Forex Trading online is like a roller coaster ride, fraught with unanswered questions. Keeping your head between your shoulders and building an emotional equilibrium between profits and losses is essential.  

Disclaimer: ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. – ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400025, India, Tel No : 022 – 2288 2460, 022 – 2288 2470. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730) and BSE Ltd (Member Code :103) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000, E-mail address: Investment in securities market are subject to market risks, read all the related documents carefully before investing. Composite Corporate Agent License No.CA0113, AMFI Regn. No.: ARN-0845. PFRDA registration numbers:  POP no -05092018. We are distributors of Insurance and Mutual funds, Corporate Fixed Deposits, NCDs, PMS and AIF products. We act as a Syndicate, Sub -syndicate member for IPO, FPO. Please note that Mutual Fund Investments are subject to market risks, read the scheme related documents carefully before investing for full understanding and detail. . ICICI Securities Ltd. acts as a referral agent to ICICI Bank Ltd., ICICI Home Finance Company Limited  and various other banks / NBFC for personal finance, housing related services etc. & the loan facility is subjective to fulfilment of eligibility criteria, terms and conditions etc. NPS is a defined contribution plan and the benefits would depend upon the amounts of contributions invested and the investment growth up to the point of exit from NPS. Insurance is the subject matter of solicitation. ICICI Securities Ltd. does not underwrite the risk or act as an insurer. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.

The non-broking products / services like Mutual Funds, Insurance, FD/ Bonds, loans, PMS, Tax, Elocker, NPS, IPO, Research, Financial Learning etc. are not exchange traded products / services and ICICI Securities Ltd. is only acting as a distributor/ referral Agent of such products / services and all disputes with respect to the distribution activity would not have access to Exchange investor redressal or Arbitration mechanism.

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