Next LOL
Finance

How to start forex trading in India?

Forex trading market or FX is a decentralized global market that focuses on over the counter trade. So, in over the counter strategy, the exchange process can take place without the intervention of an exchange regulator.

Forex is the most liquid and largest-ever market in the world. The trade in the same is pegged at 4 trillion dollars per day.

So, before we explain how to start forex trading in India, let us talk about some strategies for your gains – 

  • Leverage

Leverage is a multiplier. This is X times the margin for which you can take a position. This means that if you have a leverage of 10 times, it means that you can trade in 10 times the actual value that was to be invested in the same.

Forex brokers provide various values of leverage – 10: 1, 50: 1 up to 300:1! In short, it helps you to gain more at lower investment. This brings huge profits and losses. Thus, higher the leverage, higher the risk. Therefore, it is important to understand your needs before you delve deeper into the matter of how to start forex trading in India.

  • Commissions and brokerage fees

Unlike the stock trading, you do not need to pay fees on each trade in foreign exchange. 

Also, spread on the currency pairs is variable from one firm to another. The difference can be as small as one pip (equivalent to 0.0001) or of larger values. It can make a huge difference and a larger spread means that there are more pips. This means more value to capture or lose.

It is therefore important to understand the spreads offered by your brokerage house on the currency pairs that you wish to trade in.

  • Other factors

There are numerous other factors that can be a part of the selection of these brokers. Each of these majors offers variable hours of service and support programs. Likewise, they may offer free investor education and training programs that can go a long way for your benefit.

Related posts

Finance Experts Have Numerous Job Opportunities Available

Roberts Lam

How to Go About Car Insurance Policy Renewal?

Roberts Lam

Help guide to Commercial Equipment Leasing and Financing

Roberts Lam