Beginners Guide To Currency Markets In India

8
Beginners Guide To Currency Markets In India

Transcript of Beginners Guide To Currency Markets In India

Page 1: Beginners Guide To Currency Markets In India

Beginners Guide To Currency Markets In India

Page 2: Beginners Guide To Currency Markets In India

What Is Currency Market?

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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.

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Currency Trading In India

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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.

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Currency Trading Exchanges In India

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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.

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Benefits Of Trading in Currency Markets

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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.

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How The Currency Trading Works

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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

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• Thomson Reuters LLP

• CommTathya Research

• Wikipedia

References

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Page 8: Beginners Guide To Currency Markets In India

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

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