A market that attracts billions of dollars of daily volume, is one of the largest markets in the world and is available 24/7 – this is how Forex Trading India can be described. Entry requirements and low margin benefits make it a solid addition to any retail investor’s portfolio.
It is also worth noting some features of Forex trading in India. For example, you should be careful as there may be penalties for misuse of US dollars from the RBI reserves. You can read about everything you need in this article.
Forex trading in India
Yes, Forex Trading is completely legal in India. However, the volume of currency trading within the country is limited due to strict regulatory restrictions. Traders are only allowed to trade currencies with highly regulated brokers.
Also, only some pairs of currencies that can be traded are allowed – the main one is Indian Rupee (INR), pairs for it can be US Dollar (USD), Great Britain Pound (GBP) and Japanese Yen (JPY). It is also worth noting that you cannot trade on the foreign exchange market, but you can still trade in currencies through the stock exchange.
Despite some restrictions, Forex trading is still popular in India, as in many other countries. However, before you start, you need to study all the rules and laws so as not to incur problems with the authorities.
A Few Tips for Forex Trading
There are some tips to help inexperienced traders get into Forex trading. These are all things you should learn before you decide to trade:
Study the market
Whatever market you start in, there will always be some factors, from international to local. Therefore, you should study as much data as possible from different sources. It also makes sense to study the history and statistics of how different currencies have fared against each other. Also, the events that led to sharp jumps in value, both positive and negative.
Evaluate research strategies
Study the experience of the largest and most famous investors in order to understand what development strategy they chose. It will also be useful to compare different strategies with each other. Perhaps you can come up with something new that will bring you more profit.
After choosing a pair of currencies, try to stick to them
It is always better to trade one, maximum two pairs of currencies and not spread your attention too widely. Keeping your focus on your resources and opportunities is one of the first and most useful trading lessons you should learn. For example, if you have chosen a pair of INR and USD or INR and GBP, you should not switch to other pairs even if they seem to be more profitable in the short term. This will allow you to gain the necessary experience and knowledge. When switching to other pairs, you will have to learn all this practically from scratch.
Keep your goals in sight
Before you start trading, you should always set goals that you want to achieve. Goals can be both short term and long term. Depending on your goals, you will be able to select and adapt the appropriate investment strategies for yourself, instead of rushing into them when time is short.
Define your limits
Trading does not always go well. You can get rich as much as you can, or you can lose all your money. That is why it is necessary to designate for yourself the point of no return and understand when you need to leave trading for better times. Once you have decided on this, it will be much easier in the future.
When participating in forex trading in India, these tips will come in handy. The main thing to remember is that knowledge is power. This power must be accumulated and used wisely. Going into trading without at least a minimum amount of necessary knowledge is a big mistake that can cost you all your money. Therefore, study the market, its history and the tools that you plan to use. Always follow the news, not only local but also international.
One of the most important things here is the choice of a platform for trading. Here the motto “the older the better” and “the more famous the better” is more appropriate. It is always worth choosing those sites that have been around for at least five years or more. You should also study the history of the site and, most importantly, whether it has been involved in various scandals. You will not only save money, but also your nerves. The example of such a site is fbs.com:
- 12 years on the market;
- an experienced support team;
- constantly updated news for traders.
If you love soccer, there is a nice bonus for you. Fbs.com is the official trading partner for Barcelona FC and Leicester City FC. Be on top of your game!
And a little about what is better to use for trading in India – the stock market or forex. Forex trading is usually chosen by short-term traders who have limited funds and are not afraid of high risks. Beginners in trading who are looking for a more stable, smaller and longer-term profit choose the stock market.