Currency and Forex Trading

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The global increase in trade and foreign investments has led to inter-connection of many national economies. This and the resulting fluctuations in exchange rates, has created a huge international market for Forex, opening up another exciting avenue for trading. The Forex market offers unmatched potential for profitable trading in any market condition or any stage of the business cycle.

how you can benefit from forex

  • Low Commission
  • No Middlemen
  • Standardized Lot Size
  • Transaction Costs as low as 0.07%
  • High Liquidity
  • Instant Transactions
  • Low Margin, High Leverage
  • Online Access
  • Interbank Market
  • Self-regulatory
  • No Insider Trading
  • Limited Regulation

product specification

Contract Specification →
Underlying Rate of exchange between 1 USD & INR
Pair USD/INR, EUR/INR, GBP/INR, JPY/INR
Contract Months 12 consecutive calendar months i.e. a view up to 1 year in future can be taken
Expiration date and time / Last trading day & time At 12:30 noon, two working days prior to the last Mumbai Interbank Settlement day of the month
Min Price fluctuation / Tick size 0.25 paise or INR 0.0025
Settlement Daily Interim MTM settlement Final settlement Cash settled in INR Based on daily closing price of the contract Based on LTDs RBI reference rate
Margin required for 1 lot USD/INR 1.75% on the first day & 1% thereafter
Market timings 9:00 AM to 5:00 PM
Events likely to impact USDINR rate → General trend for demand/supply of USD Impact on USD Impact on INR
Increase in exports of India Excess inflow of USD in the country Depreciates Appreciates
RBI is selling USD to meet demand for the dollar Supply of USD increases Depreciates Appreciates
NRI Forex remittance is increasing Increase in USD inflow Depreciates Appreciates
Positive trade balance Increase in USD inflow Depreciates Appreciates
Increase in exports of India Demand for USD increases Depreciates Appreciates
Rise in global prices of commodities Demand for USD rises due to costlier imports Depreciates Appreciates
FIIs buying back USD Excessive USD outflow Depreciates Appreciates
RBI is buying USD to absorb excess USD due to Forex inflows Absorption of excess USD liquidity Depreciates Appreciates

Currency Trading FAQs

What are the pairs in currencies?

oreign exchange or Forex is the simultaneous buying of one currency and selling of another. Currencies are traded through a broker or dealer and are executed in currency pairs. For example: the Euro and the US Dollar (EUR/USD) or the British Pound and the Japanese Yen (GBP/JPY). The Foreign Exchange Market (Forex) is the largest financial market in the world, with a daily volume of over $4 trillion. This is more than three times the total amount of the stocks and futures markets combined. Unlike other financial markets, the Forex spot market has neither a physical location nor a central exchange. It operates through an electronic network of banks, corporations, and individuals trading one currency for another. The lack of a physical exchange enables the Forex market to operate on a 24-hour basis, spanning from one time zone to another across the major financial centers. This fact – that there is no centralized exchange – is important to keep in mind as it permeates all aspects of the Forex experience.

What are the lot sizes?

USD-INR – 1000 Dollars, EUR-INR – 1000 Euros, GBP-INR 1000 GBP, JPY-INR – 1,00,000 JPY

When is the contract expiry in currencies?

2 working days prior to the last business day of the month

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