Beginners Guide To Currency Markets In India
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Transcript of Beginners Guide To Currency Markets In India
Beginners Guide To Currency Markets In India
What Is Currency Market?
08-01-2016
Currency markets also known as FOREX (Foreign Exchange
market) - a marketplace where currencies are bought and
sold.
The Forex Market began in the 1970's, when free exchange
rates and floating currencies were introduced.
Currency Trading In India
08-01-2016
Currency derivatives were introduced in India in 2008.
Currently 4 currency pairs USDINR, JPYINR, GBPINR & EURINR
are available for trading in Derivatives (Futures and Options Segment).
Currency Trading is available from Monday to Friday
between 9:00 am -5:00 pm.
Currency Trading Exchanges In India
08-01-2016
Major Currency Trading Exchanges - NSE, BSE, MCX-SX & USE.
Average Daily Turnover for the financial year 2014-2015 stood
at whopping Rs 22,675 crore.
Benefits Of Trading in Currency Markets
08-01-2016
Hedging: Corporates having exposure to foreign currency have efficient toolto manage currency risks & Fluctuations. E.g. Exporters to hedge their future
receivables, Borrowers to hedge foreign currency 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 byusing 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.
Arbitrage: You can make profits by taking advantage of the exchange rates ofthe currency in different markets and different exchanges.
Leverage: You can trade in the currency derivatives by just paying a % valuecalled the margin amount instead of the full traded value.
How The Currency Trading Works
08-01-2016
Register with a broker for the
currency derivative Demat
Account
Log-in in the account & Allocate
funds for trading.
Research Thoroughly &
Determine strategy before any trade
• Thomson Reuters LLP
• CommTathya Research
• Wikipedia
References
08-01-2016
Mumbai Address 128, A. R. Street,
Near Mandvi Post Office,
Mumbai Maharashtra - 400003 Telephone : +91 22 6060 0889
Nagpur Address 1st Floor, Nikalas Business Centre,
Maharajbagh Road, Ramdaspeth,
Nagpur, Maharashtra - 440010
Telephone : +91 712 2422939
website : www.commtathya.com
08-01-2016