What are Currencies?

There are many ways to measure value, in today’s day and age, currency is the primary one. In history, we have progressed from the barter system, to metals (eg. Gold and silver), to paper money, and now digital money.
Through the years, as cross border trade intensified, out of the need to measure the true value of the other country’s money, was born the concept of currency evaluation. The system has gone through many iterations of improvement, and is contemporarily done based on a market system, where the forces of supply and demand ascertain the value of a currency pair 1the value of one currency when measured via another currency. Eg. $1 USD = ₹ 65 .

Why do people trade in currencies?

For the following purposes –

  • Investing in the currency of the country whose economy’s future prospects seem bright.
  • Buying a currency future 2A currency future is a contract to exchange one currency for another, at a specified future date. This exchange is done at the price specified on the date of the contract. today, to meet an upcoming obligation.
  • Hedging against foreign exchange risk.
  • Speculation.

How does one prepare to be a successful forex trader?

A wide variety of factors affect the prices of currencies, so just like while investing in stocks one considers, the latest as well as historical results, the people in management, future prospects etc. even here, many things need to be looked into.
A few of them are –

  • Prevailing interest rates in both the countries whose currencies form the pair.
  • Inflation rates in both countries.
  • World economic news, and geopolitical events.

Who regulates these markets? Who is eligible to trade in them?

Currency futures are listed on the NSE and BSE, which are regulated by the Securities and Exchange Board of India (SEBI). So even these fall under the regulatory ambit of SEBI.
Anyone who submits their KYC details with the broker and has a bank account from which they can spare some amount to use for trading purposes.

When are these markets open?

Trading on the Currency Derivatives segment takes place on all days of the week (except Saturdays and Sundays and holidays declared by the Exchange in advance). The market timings of the currency derivatives segment are:

Currency Futures & Options (USDINR, EURINR, GBPINR, JPYINR), T-Bills Futures & Interest Rate Futures Cross Currency Futures and Options (EURUSD, GBPUSD & USDJPY)
Normal Market Open Time 9:00 hrs
Normal Market Close Time 17:00 hrs 19:30 hrs

Where can I get started?

Though there are many good brokers in the market, we would be happy if you chose us.
To get started, please open your account by clicking here.