A market that attracts about $5.2 trillion in daily volume, recognised as world’s largest market, accessible globally 24 hours a day – that is exactly what the Currency market is made up of. The advantage of small margin requirements and lower entry barriers makes it an important part of a retail investor’s portfolio.
Transforming distribution and marketing with key capabilities in customer insight and analytics.
Transforming distribution and marketing with key capabilities in customer insight and analytics.
The move comes as market regulator SEBI has made a steep hike in the minimum investment size for any equity derivative product from Rs. 2 lakh to Rs. 5 lakh currently in an effort to safeguard small investors from high-risk products.
Forex trading, is the conversion of one currency into another. It is one of the most actively traded markets in the world, with an average daily trading volume of $5 trillion.
All currency trading is done in pairs. Unlike the stock market, where you can buy or sell a single stock, you have to buy one currency and sell another currency in the Forex market. Next, nearly all currencies are priced out to the fourth decimal point. A percentage in point is the smallest increment of trade.
Forex trading may give you profits if you hedge fund with deep pockets or an unusually skilled currency trader. While this could be interpreted to mean that about one in three traders does not lose money while trading in currencies, that’s not the same as getting rich trading forex.
Forex trading involves the trading of currency pairs. Any investment that offers potential profit also has downside risk, up to the point of losing much more than the value of your transaction when trading on margin.
The Economic survey of India 2014-15 said India could target foreign exchange reserves of US$750 billion-US$1 trillion. As of December 2019, India’s foreign exchange reserves are mainly composed of US dollar in the forms of US government bonds and institutional bonds with nearly 6% of forex reserves in gold.