But first, let us analyse the benefits of Currency trading in India. Hedging is a way of reducing your losses in the light of unexpected movement in the price of currency pairs. For instance, if you have a payment to make in USD and you think that USD-INR is going to depreciate, you can hedge your forex exposure by purchasing USD-INR and that will fix your payout rate.

Hedging can be done through simple hedging place trade to buy a currency pair and place another trade to sell the same , complex hedging has a different approach than simple hedging because of restrictions from trader , multi-currency pair you make a hedge using two different currency pairs , and forex option agree to conduct an exchange at a particular price in future. Currency prices, even though unstable, are somehow predictable. Besides, short term movement of markets can be speculated to some extent.

Here the speculators buy a currency when price is weak and trade the same currency when it has a great value. This is the strategy of exploiting the price disparity in the forex marketplace to earn profits. The trader here takes advantage of the inefficiencies in the exchange rate in different markets, which happens for a short period. You can buy the currency at a lower price and then sell it at a higher price to earn profits. In currency trading, you can get much higher leverage as compared to stocks.

The ability of an asset to be converted into cash is termed as its liquidity. Forex can offer you the advantage of high liquidity, which means you can easily convert and move large amounts of foreign currency with minimal price discounts.

High liquidity means huge sums of money can be invested and withdrawn without many hassles. If you are aware of the market norms and policies, you can comfortably buy or sell forex yourself through spot currency trading.

This can help you avoid the dicey middlemen, which not only reduces risk but can also ensure the maximum execution time. Trading in the forex markets is easy and being available for 24 hours for 5 days the week. Trading usually halts when the last market, situated in New York closes on Friday at 5 p.

You can invest in your pair of currencies at any time between the five days. We are fully committed to the highest level of business integrity and professionalism.

Forex4money means a winning combination of industry expertise and technological innovation, delivering to our customers real time quotes and superb level of liquidity. This combination ensures that our traders always have the ideal trading environment in all financial markets.

Real time margin protection, ensuring limit orders execution, automatic risk management tools, including negative balance protection. Advanced technology, ensuring uninterrupted order maintenance even under volatile market conditions Forex4money is committed to providing the highest level of customer support. Home Tools Trading Benefits.

People invest their money in mutual funds, stocks, and bonds to raise capital that requires one to opt for a Demat account. Often referred to as Foreign Exchange or Forex, Currency trading refers to the process of buying and selling currencies in the Forex marketplace to earn profits.

One can trade in currencies that are benchmarked against INR like USD, Euro, UK Pound, and Japanese Yen. But first, let us analyse the benefits of Currency trading in India. Hedging is a way of reducing your losses in the light of unexpected movement in the price of currency pairs. For instance, if you have a payment to make in USD and you think that USD-INR is going to depreciate, you can hedge your forex exposure by purchasing USD-INR and that will fix your payout rate.

Hedging can be done through simple hedging place trade to buy a currency pair and place another trade to sell the same , complex hedging has a different approach than simple hedging because of restrictions from trader , multi-currency pair you make a hedge using two different currency pairs , and forex option agree to conduct an exchange at a particular price in future.

Currency prices, even though unstable, are somehow predictable. Besides, short term movement of markets can be speculated to some extent. Here the speculators buy a currency when price is weak and trade the same currency when it has a great value.

This is the strategy of exploiting the price disparity in the forex marketplace to earn profits. The trader here takes advantage of the inefficiencies in the exchange rate in different markets, which happens for a short period. You can buy the currency at a lower price and then sell it at a higher price to earn profits.

In currency trading, you can get much higher leverage as compared to stocks. Leverage involves borrowing money, in this case from a broker, to invest in the currency market.

This is possible only if intraday trading is involved. You trade more money than what you have, and pay only a margin price of traded value and therefore get pretty high leverage. Currency trading is a great mode of earning profits. There are a plethora of reasons you should be investing your money in the currency market. The forex marketplace is open round the clock and is comparatively hassle-free. Demat account opening is not a necessity to trade-in the currency market.

The online process of forex is commission-free and superbly quick. Even though the process can be risky, but if executed wisely, can be highly rewarding. Gather adequate knowledge about the market and its traits before trading your money. Home Finance Broker Investment Online Business Trading Loans Marketing. Benefits Of Trading In Currency Market In India. Trading by Abram Jayce on August 22, views. facebook Twitter Pinterest.

Benefits : Hedging: Hedging is a way of reducing your losses in the light of unexpected movement in the price of currency pairs. Speculation: Currency prices, even though unstable, are somehow predictable. Arbitrage: This is the strategy of exploiting the price disparity in the forex marketplace to earn profits. Leverage: In currency trading, you can get much higher leverage as compared to stocks.

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When it comes to volume turnover, currency trading is the largest market in the world. facebook Twitter Pinterest. Governments are able to participate in the forex market through central bank intervention to create an impact on the value of their currencies. You may not need to open a demat account. Join Now. Stay on LiteFinance Global LLC site. A major problem in the Forex market is the difficulty to determine the value of the currency pairs rate, which can be influenced by various factors such as politics, economic changes, central banks, etc.

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