Forex trading in India: An introduction for new traders

Foreign exchange is a highly volatile and liquid financial market. As a result, many traders invest in currency pairs to make good profits. The market’s popularity is due to its low fund requirement and liquidity. 

The currency market is decentralised and is easy to trade with online forex brokers. Indian traders can open their accounts and enjoy the services of the brokers to trade. Thus, easy trading with the best trading platforms. 

To learn more about forex trading in India, we have a brief discussion in the article. 

So, let’s dive in and understand forex trading in India. 

Also read: easy markets review

An Introduction to Forex Trading in India

The Indian forex market is different from other country markets. The rules of government make it limited to currency pairs that boost the Indian rupee. Traders can invest in USD, EUR, GBP and JPY currencies only. 

Thus, the currency pairs are with INR and the four currencies. Also, brokers in the market have to take the approval of the Security Exchange Board of India for registration. 

Once they have registration with SEBI, they can offer their trading services in India. 

For example, Investby broker has registration with SEBI to provide services in India. Traders can visit the website www.investby.com and open their accounts to invest in currency pairs. 

Along with account and investment, Indian traders can benefit from the advanced features. It is a technology-friendly platform with a range of tools and indicators. 

Moreover, traders can invest in currencies easily and have the trading anywhere with its mobile app. 

Forex Market Types

The Indian forex market allows traders to invest in kinds of forex trades. They can select spots, futures or any other they find profitable. The types of forex markets have their use for particular trading processes. 

For instance, a trader opens an account with an Investby broker. First, they register and fill in details, verify and then deposit funds to invest in currency pairs. Next, they select the type of investment. 

Spot Market

Spot market trading is the spot trading between the parties. They buy or sell currency pairs instantly at the current exchange rate. 

 The contract lasts for a full two business days for payment purposes. 

Futures Market

Futures are trading on a future date. The trade parties decide the date and time of the execution in advance. It is an obligatory forex trade where traders have to perform the trade. 

Options

Investby traders can also choose options to invest in the forex market. It gives traders the right to buy and sell the currency pair on a future date. The contract between parties has a specific date and time. 

Forward Market

Also, traders can have forward contracts to trade currencies. It is similar to the future market but with a slight change. Traders have no obligation to perform the trade at the contract’s expiration. 

So, forex traders with Investby broker can use the types of market trading.

How does the forex market operate?

Investby forex traders have a simple process to invest in currency pairs. They have to, however, understand how the market works to make correct trading decisions. 

The forex market is decentralised and does not involve any third party. Besides, the market is open 24 hours for traders to invest. Therefore, they can monitor and check their investments and market opportunities to make profits. 

All these traders have to be active and use the services of the Investby trading platform. The analysis tools, indicators, charts, trading platform, customer services and easy deposit and withdrawal make it worth trading. 

Besides, it makes it easy for Indian traders to understand the market. Traders can have educational stuff to enhance their knowledge. 

The currency exchange market allows traders to invest using two methods: 

  • Over-the-counter market 
  • Inter-bank market

OTC traders can trade directly without the involvement of any exchange or broker. It is an excellent way to invest but involves risk. 

In contrast, the inter-bank market is trading through many banks. First, traders can select the bank and invest their funds. Then, they can connect it with their bank account using the bank wire or account method. 

Thus, deposit and withdrawal of funds are easy for Indian traders. 

Conclusion

Forex market trading in India is simple. First, traders must open their trading accounts with reputed financial brokers like Investby. Next, they can complete the process and invest. 

So, it’s easy to trade in the forex market by depositing funds and trading. The article also discusses the types of the forex market and how the market works. Thus, making it easy to trade.

Matthias Kuerpick

Matthias Kuerpick

I'm a Financial writer at: https://trendingbrokers.com/

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