Currency Market in India was started in October 2008 under the regulatory framework of Securities Exchange Board of India ( SEBI ) and Reserve Bank of India ( RBI ) .
Currency trading can be done in Currency Future and Currency Options. Exchange for currency trading are National Stock Exchange ( NSE ) and Multi Commodity Exchange Stock Exchange ( MCX’SX ) .
Following Currencies are traded in Indian Currency Market
1 ) USDINR
2 ) EURINR
3 ) GBPINR
4 ) JPYINR
Currencies contract specifications are as follows
USD = 1 ( 1 unit represents 1000 DOLLAR )
EUR = 1 ( 1 unit represents 1000 EURO )
GBP = 1 ( 1 unit represents 1000 POUND )
JPY = 1 ( 1 unit represents 100000 YEN )
In Indian currency the tick size changes by 0.25 paise or 0.0025
Currency market timings are Monday to Friday Morning ( 9am to 5 pm ) . There are total twelve expiry contracts in a year . Expiry of currency contract is on the last working day of the expiry month.
The two currencies that make up an exchange rate. When one currency is bought , the other is sold and vice versa . For example USDINR .
In the currency pair there is a Base Currency and Counter Currency. For example in the pair USDINR Base Currency is USD and Counter Currency is INR.
Currency trading is the best trading opportunity in India. As compared to other markets very less margin amount is required to trade the one lot of Currency.
You can trade one lot of EURINR for just 3000 Rs margin money. Currency trading is a intraday as well as swing trading product. Mostly currency trading is good for Positional trading or swing trading .
You can take profit in the both long and short positions in currency trading.
If you have your buy or sell position in any of the four currency trades then you can hold your position maximum 30 days i e up to the last day of expiry .
If we do not square-off the position on the last day of currency expiry then exchange will square-off the position on expiry and settle the contracts. You can also get good results in intraday currency trading.