What is forex trading in India?
Forex is popularly known as currency trading or foreign exchange. It is a decentralized and
global market where all currencies of different countries are bought and sold. The forex market is
the liquid and largest market in the world.
You can do forex trading in India as it is legal. The trading can be done on Indian exchange like
NSE, BSE, and MCX- SX. You can buy or sell currency according to a decrease or increase in
value. The two currencies are involved in one transaction that is known as the currency pair.
Is forex trading legal in India?
The forex trading carries via the internet or electronic is prohibited. But the forex trading is legal
in India when done through specific trading platforms. If you are a resident of India then you can
do the forex trading via Indian exchanges like BSE and NSE. It also offers access to various
currency derivatives.
Who are brokers in forex?
Brokers are firms providing traders access to the global forum and allow them to sell and buy
foreign currencies. The transaction always takes place between two different currencies. The
forex trader can sell or buy the specific pair. The forex brokers are also known as forex traders.
How forex trading is done?
The foreign exchange takes place between two parties. The market is divided into three different
kinds such as forward, spot, and future forex market. The forex trading in India involves selling
of currency and buying another one.
The currency is listed in three letters. The two-letter stands for the region and the last one are for currency. For example, if you take currency pair USD/GBP then it consists of buying US dollar ads selling Great British Pound.
The currency pairs can be further classified into various categories like minor pairs, major pairs,
regional pairs, and exotics. Forex trading can be done by selling one currency and buying
another one.
Strategies of forex trading in India
The various strategies for forex trading are discussed below:
Trend trading- The forex trader identifies the movement of the price of the currency. The price
depends on entry and exit points.
Price action strategy- This strategy is implemented in forex trading. It depends on bears or bulls
of price action and depends on market conditions.
Range trading- The trading is done at specific currency prices. These prices are needed to
recognize promising price conditions.
Countertrend trading- The trade is done against recent trends for earning gains. This strategy is
based on the trend that will get reverse.
Position trading- it is implemented by seasoned veteran forex traders. The charts are analyzed
and the trader must have a good understanding of the market.
Breakout trading- The best forex account manager enters the market when the market emerges
from the previous range of trading.
The forex trading in India is legal if done through reliable and approved platforms. So, you can
follow the above-mentioned forex tips to maximize your profits.
