What Is Forex Trading And How To Do Forex Trading In India - Mohan

What Is Forex Trading And How To Do Forex Trading In India

What Is Forex Trading and How To Do Forex Trading In India?



What forex trading?

Forex trading is nothing but converting one currency into another. It is also called as FX trading or foreign exchange and nothing but a forex trading meaning.

Forex trading is one of the best active trading methods in the world. In general, forex trading is explained as a network of sellers and buyers, who transfer currency for a fixed price between each other. So, individuals, banks and companies can exchange currencies.

Fewer people do forex trading for general purposes and most people do it for earning profits. Even though people might get higher profits but they must be aware of the risks involved in forex trading. Recently Reserve bank of India introduced forex retail trading platform.


What Is Forex Trading And How To Do Forex Trading In India


How does forex trading work?

In the FX trading market one currency is exchanged for another currency. The exchange rate between two currencies is the most important part. This exchange rate has so many changes for every seconds, minutes, hours, days, weeks, and month.

Exchange rate behavior shows a lot of changes for every 24 hours or 5 days a week. It reflects the health of the economy every time.



What are the benefits of Forex trading?

Market working hours:

Forex trading market is open for 24 hours of time and 5 days per week. Foreign exchange market closes on Friday at 10 pm (London time) and will open again on Sunday at 9pm (London time). So there might be a difference between price from Friday to Sunday.

High liquidity:

Forex trading market holds the most liquid market in the world because every day there are so many buyers and sellers who can make transactions at any time. Every day companies, bank, individuals complete transactions to get higher profits.

Hedge with forex:

Hedging is nothing but a method used to reduce the risk of unwanted moves by opening multiple strategic positions. Although the FX market has volatility, hedging technique provides options to reduce risks of losing amount.

Due to these benefits, most people prefer a foreign exchange over the stock exchange.


Is forex trading legal in India?

Yes, absolutely doing forex trading in India is legal if the base currency is INR(Indian Rupee). But if any forex traders do overseas FX trading from overseas, then it is illegal. There is no permission for Indian citizens to send funds overseas to foreign exchange brokers either directly or indirectly. 

Based on some necessary conditions, you can perform currency trading. In India, you have to follow strict rules and terms and conditions implemented by the Indian government for foreign exchange then only forex trading in India legal. So to be safe you must do FX trading through registred Indian forex brokers only because forex trade between two foreign currencies is illegal in India.


5 best forex trading strategies that work:

Strategies for forex trading beginners that you may look for better profits in your trading. So let me introduce simple forex trading strategies for you.


Swing trading:

Swing trading is a method in which you can hold trades for days or weeks. The usual time frame for trading is 1 hour or 4 hours. As a swing trader, your main objective is to capture a single move in the market.

Pros:
  • Due to more trading opportunities, you will see more profits every year.
  • You can continue your full-time job even being a swing trader.
Cons:
  • You cannot take the risk to ride big trades.
  • Contains some overnight risk.

Position trading:

Position trading is a method in which you can hold trades for weeks or months. The usual time frame for trading is daily or weekly. As a position trader, you mainly depend on fundamental analysis in trading.

Pros:
  • You can spend less time on trading because your trades are long term.
  • For taking risks you will get good rewards.
  • You will get less stress because you have no worries about short-term price fluctuations.
Cons:
  • You might get fewer profits every year because of the fewer number of trades.
  • Needs minimum knowledge about fundamental analysis.

Day trading:

Day trading is a method in which you can hold trades for minutes or hours. The usual time frame for trading is 5 minutes or 15 minutes. As a day trader, your main focus is to look for intraday volatility.

Pros:
  • No chance for overnight risks because you will close your trades by the end of the day daily.
  • If you are good and brilliant, you can make good money in every month.
Cons:
  • There is a chance for higher loses if you suffer massive slippage.
  • You will get stress because you have to watch constantly markets.

Transition trading:

Transition trading is a method in which you will enter a trade on a lower time frame, if the market moves according to your way, you will get massive profits and trail your stop on a higher time frame.

Pros:
  • You can get good rewards for taking huge risks.
  • You can lower risk because you are entering on the lower time frame.
Cons:
  • Out of all your trades, fewer trades will take you to the monster winners category.
  • Need to have minimum knowledge of understanding multiple time frames.

Scalping trading:

Scalping trading is a method in which you have to think of how the market is behaving and how to draw the profits based on market behaviors. Scalping trading is a very short-term strategy where you can hold your trades for just seconds or minutes.

Pros:
  • Chance to make a good income from healthy trading.
  • You have lots of trading options every day
Cons:
  • You will suffer from a high amount of stress and burden.
  • Huge financial cost.
  • You have to stare towards your screen for a lot of time in a day.

Moving averages:

This is another trading strategy which is frequently used in forex trading. It is used for 10, 50, 100 or 200 periods. Moving averages strategy is mainly developed to respond quickly to prices changes instantly.


You can choose any forex trading strategy based on your objectives and your different trading ways.




Which are the best forex trading platforms in 2019?

These are the best trading brokers in 2019.

CMC Markets:

It is mostly suitable for low costs. CMC Markets offers good range of offerings with the best pricing and trading tools and charting.

Saxo Bank:

It provides good research tools, competitive pricing. Saxo Bank offers customers the best trading platforms and good packages for customers.

IG:

It is the most trusted and best trading broker in India. IG offers excellent trading and research tools, competitive rates and industry-leading education.

TD Ameritrade FX:

It has 80 currency pairs to trade along with trading tools and research. TD Ameritrade FX provides USA-based forex trades a winning solution.

FOREX.com:

FOREX.com trading provides plenty of options for forex and CFD traders. It has diverse trading tools and full feature platforms and comprehensive research.

XTB:

Customer service is the main highlight of this trading broker. Overall XTB provides well-rounded and competitive trading experience.

City Index:

It is a forex broker that is regulated in Singapore and UK which offers competitive spreads across various trading platforms.

Dukascopy:

Dukascopy mobile app stands as the best forex trade app in 2019. It offers customers industry-leading trading tools and market research.



Now the question is What is the best platform to start Forex trading in India? Based on the below various terms you have to choose a forex broker and which is the best trading platform.

Best forex research:
  • Saxo Bank
  • IG

Best forex trading apps:
  • Dukascopy
  • Saxo Bank

Best for day trading:
  • CMC Markets
  • Saxo Bank

Best international offering:
  • IG

Best forex trading platforms:
  • Saxo Bank
  • TD Ameritrade

Best forex broker for low costs:
  • CMC Markets
  • FOREX.com



How to start trading forex?

It is very easy to start FX trading or forex trading in India. You can start trading forex with simple 3 steps.

Step 1: Open any trading account on any legal forex trading platform.

Step 2: Deposit funds into your account.

Step 3: Start trading now.



What is resistance level in forex?

The resistance level is a price point at which a sudden rise in the price is stopped by the emergence of a growing number of sellers who wants to sell at that price. 



How can I do forex trading in Bangalore?

You can open your forex trading account in Octafx.

Due to this trading, you have the chance to get below benefits:
  • Trade and then win prizes
  • Get a 50% commission on every deposit
  • Gifts
  • Seasonal bonus
  • Instant payments
  • Fixed-rate for Indian clients
  • Lowest spread in the industry
  • Best affiliate program.


How do I trade Forex legally from India or How to trade forex from India?

If you want to do forex trading legally from India then you have to follow strict rules introduced by the Indian government to stay away from penalties. To be safe and to avoid risks you must do FX trading through registred Indian forex brokers only because forex trade between two foreign currencies is illegal in India.

You can do forex trading in India if your base currency is Indian Rupee. But if any forex traders do overseas FX trading from overseas, then it is illegal. There is no permission for Indian citizens to send funds overseas to foreign exchange brokers either directly or indirectly. 



How much money do you need to start forex trading?

This is the first point that comes into your mind and you should also be aware of what is your potential and capability to start forex trading.

You can decide how much money you need to start is based on the type of forex traders of forex brokers and what type of account you are going to open. In most of the cases, you need minim 50$ to 100$ to start forex trading.



How can one trade in foreign currency in India or How to start currency trading in India?

To do foreign currency trading in India you have to consider foreign currencies that are benchmarked against INR.

Generally, RBI allows some INR currency pairs to trade in foreign currency. They are:
  • GBPINR
  • JPYINR
  • EURINR
  • USDINR
Nowadays, foreign currency trading is rapidly growing in India and you have to trade without risks and penalties. Mostly used foreign currencies in India are EUR USD.



How are the earnings from Forex trading taxed in India?

It is always a better idea to consider tax implications about your earnings before trading. Equity investments are pretty much straightforward. It will be treated short-term capital gains if you made a profit within the period of 1 year. These short-term capital gains will be taxed at 15% fixed interest.

It will be treated long term capital gains if you made a profit for trades which you hold for the more than 1 year. These long-term capital gains are tax-free.



How to make money trading Forex without any investment?

In FX trading you can start trading without any deposit because some top trade brokers are providing a free bonus to start your way in trading.

It is a known fact that is a risk in forex trading and trading without any prior knowledge about it many leads to losses. So make sure to gather all the knowledge about risks and penalties involved in FX trading. To avoid such type of risks you can start free accounts provided by top forex brokers which will provide a free bonus.

Even though if you think it is risky to start with free bones acccounts then you have another option in the form of demo account. Yes, you heard it right. Open a demo account where you can get all training methods and videos to gather knowledge about forex trading, forex markets and make yourself ready to trade with deposit amount or free bonus amount.



How to start earning money through Forex trading as a beginner?

First of all, you have to question yourself whether you have any knowledge about forex trading and what are risks hidden in it and which simple forex trading strategies you decide to apply and how to stop loss in your trading. You need minimum knowledge about terms like technical analysis in forex trading.

If you think as a beginner you have no prior knowledge then it is better to open free bonus account or demo account to go through training and master art of earning money in forex trading or FX trading.

If you as a beginner you have enough knowledge to proceed to do forex trading then you can follow below steps:

Step 1: Search for the best free bonus account or demo account.

Step 2: Open trading account on any legal forex trading platform.

Step 3: Start with a free bonus account or deposit funds into your account.

Step 3: Start trading wisely.
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mohan

Myself Mohan.Owner of this blog. Iam a software enginner. I will provide genuine stuff for all my readers.

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