INDIAN-CURRENCY-MARKET trading operations explained

 

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Mar 11,  · The Reserve Bank of India and Securities Exchange Board of India regulate the forex trading in India. It is legal in India if the base currency is INR only, if the forex trade is taking place between two foreign currencies, it is illegal.

India Inflation Rate at 5-Month Low of 4. India Leaves Monetary Policy Unchanged. India Wholesale Inflation at 7-Month Low of 2. India Inflation Rate at 4-Month Low. Brazil Trade Surplus Smaller than Expected. Brazil Jobless Rate Below Estimates at Italy September inflation Rate Edges Down to 1.

Portugal Inflation Rate Ticks Up to 1. French Inflation Rate Slows to 2. Calendar Forecast Indicators News Blog. Construction Output Housing Index. Receive reported values for your favourite economic indicators in your inbox the instant they get released.

Latest Update as on NSE has launched trading in cross currency pairs. You can now trade all the major international pairs. You can do it in a completely legal setup. Please refer to page no.

Moreover, Indian regulators can't regulate companies, which aren't based in India as trading operations take place outside India. Thus, there is no law violation …So people dont listen to anyone go with a proof … Because proof is everything.

Happy Trading …Peace Out. Forex trading by individuals in India is not permissible by Indian Government. However the amount of USD 2,00, can be utilized for Forex trading and moreover if your broker provides you with a high leverage then you can trade by investing only a small amount. Finally we conclude that it is legal if you follow the right channel i. A top rated brokers for now are US Brokers http: US Dollar Banking Options — The first and most important aspect of you selecting a Forex Broker to sign up to if you are based in the US is finding one that will allow you to make deposits, trade and also withdraw your trading profits in US Dollars, and be a method that is convenient to you.

Licensed and Regulated Brokers — No matter how large and generous a Forex Brokers sign up and ongoing bonus offers are you should make sure that you only every stick to those Brokers which hold a full and valid trading licence.

Fats On Time Payouts — Getting paid your entire withdrawals not only via a method you find convenient but also in a timely fashion is another thing all US based Forex traders should be demanding. Multiple Trading Opportunities — You should never restrict yourself in regards to the number of Forex related trading opportunities you can place at any one single Broker. Just keep in mind that some Brokers only offer a limited range of different trading opportunities and currency pairings and as such they are the Brokers you should avoid.

The Indian Rupee is the official currency and the legal tender of the country, and it is illegal for Indian citizens to transact in any other currencies while they are in India. So if you are trading with Indian Brokers whom have membership with the above mentioned Indian Exchanges it is perfectly legal. But still there are all the other option like bullion, base metals, energy, NSE and BSE to trade and earn high-end profit under the supervision of the advisory firms like mcxtips.

The reports and tips are generated through a fundamental and technical analysis for high accuracy rate and tips. Open the account in name of your friend and start trading. If you have enough experience, you can participate in any contest offered by international brokers or you can use welcome bonus from brokers only few brokers provide this service.

If you win in any contest you will get money from them which is not yours , I mean you did not put money from your pocket, and its brokers money you have not made any transaction. So you are done with first problem deposit. And now you are not withdrawing your money to your bank account and also you can make online purchases with that card.

If you want to buy things from outside you can transfer money to online wallets like Skrill, netteler. Forex trading is a global business and you can easily do this from any part of the world including India.

Yes Forex trading is being done with a Forex broker which will help you in understanding the markets with the Technical Analysis and also give you market news data in the form of Economic calendar. Start trading with a Demo account now. Rbi has allowed forex …trading but you cannot trade in all type of currency pairs.. You can trade currencies which are benchmarked against INR, it means you can trade only currencies that have pairing with INR.

India is a developing nation, and the largest fiscal deficit also. IF you trade any other currency pair other than INR being one of them and you lose money, then you would buy the other currency from RBI to settle your shortfall. This will create more deficit and RBI is not in a position to afford that. Anyways we have low volume in our tradable INR currency pairs, so if we allow trading in other currencies, it will result in more volume reduction.

This page may be out of date. Save your draft before refreshing this page. Submit any pending changes before refreshing this page. Ask New Question Sign In. Quora uses cookies to improve your experience. Why is forex trading illegal in India? Additional Reading on Forex Trading: How can I legally start forex trading in India?

How is forex trading in India? Is it illegal in India? It is illegal in India. Are there better brokers in India for Forex? Answered Jun 24, There are many online brokers who misguide retail investors claiming forex spot trading can be performed legally via them, however it is not true. It is generally to prevent retail investors from losing big time this is what RBI claims!

But in my opinion it is just to prevent currency outflow this is my personal opinion. Certain points worth considering regarding forex are: The spot market witnesses the largest quantum of trades — that is because both the futures and forward markets are based on the underlying real asset i.

However, this was not always the case. The futures market was more favored in the past because it was available for a longer period of time for individual investors. But, now with electronic trading, the spot market surpasses all others. However, companies and institutions prefer the futures and forward markets more than individual investors, as they need to hedge their foreign exchange risks. Oh, sorry, I need to tell you the difference between spot, forward and future trades. The spot market is where I buy or sell currencies according to the current price — which is determined by the demand and supply for that particular currency.

The biggest difference between the spot and the forward and futures trade is that while the spot trade deals in actual currencies, the future and forwards trade do not. The futures contracts have specific details, such as, settlement and delivery dates, number of units, minimum price increments etc. These are traded on public commodities markets with the exchange acting as a counterpart to the trader, i. Actually, when you asked me to tell you about Forex, I was going to suggest that you go through the site yourself.

Not only does the site contain basic information for those who have absolutely no idea or knowledge about Forex and Forex trading, it also features detailed information on Forex trading, knowledge and information based articles, news from the Forex, Equity and Commodity markets, information and links to brokers, analysis of the various markets and financial news from around the world.

After spending a few weeks reading all I could about Forex trading, I signed up with a broker from their list and opened a Demo trading account. This actually helped me a lot, allowing me to practice Forex trading without any risk. Once I was confident that I could manage a few small trades without risking too much, I opted for a live mini account with the same broker. The process itself is rather simple and everything is online. I deposited some money into the account and started trading — and have been doing so ever since.

Oh, they also have a list of the top Forex managed account service companies that lets you to invest in the Forex market — even if you have absolutely no knowledge about Forex.

All you need to do is put up a small amount of margin money in your account and the broker takes care of all the trading and managing of the account for you. I opened two accounts — one where I am trading on my own with the mini account and one where the broker trades and manages the mini account — sort of like spreading my risk.

In a nut shell, this is one complete site for learning and trading — and I too have been recommending it to those who ask me. My daughter looked at me for a few seconds and walked away, leaving me wondering as to what happened here.