FOREX TRADING IN INDIA

Forex trading has a lot of risk involved to it, even though it is very exciting and has a good profit in the market. Before starting the trading in the Forex market, it is very important to understand the pitfalls and the opportunities offered by the Forex Market and what does the margin trading implies.

In India, the policies for foreign currency exchange are very strict, even after the liberalization and it is still isolated and a highly protected nation in terms of economy. Indian Currency i.e. Rupee is still controlled by the Reserve Bank of India which is the National Banking Authority.

Therefore, the citizens are unable to trade freely Rupee into other currencies. Indian citizens are still required to provide a valid reason and submit their annual limits to carry out the trade in the Forex Market.  Even the most common and famous money transfer methods like the Western Union Money Transfer which is available worldwide is not available in India.

Here the Indian Citizens can just receive money sent to them by their friend or relatives, however they are forbidden to send money.  Not only this, even the receiving procedure is very difficult, as the person has to submit a Photo Identity Proof before receiving the money. (more…)

WHAT IS FOREX ?

Forex or Foreign exchange is the most innovative financial market of our century. Actually it has made use of an old activity to create an innovative market. In fact the basic concept of fx is the currency exchange. The exchange currency consists on the exchange of one currency with another. You can need to exchange currencies, if you are in a foreign country and your currency is not accepted there, or you want to import foreign products.

So exchanging currencies could cause a problem: the loss. The value of one currency against another is never the same. For this reason,  the speculation on this different value is the most important activity,  of this innovative market. But be careful, it is not very simple. You can make a big profit or a big loss! But the good news is that you can become an expert if you follow simple roles.

First one, to find the right moment to sell and buy currencies you have to analyze: monetary situation of both currency’s countries, stock prices and exchange rates. Second one, you haven’t to try to trade,  at the beginning of your experience with the forex market. (more…)