Currency Trading also known as ForEx Trading is an investment tool that is used for trading currencies. Back in the day, when the concept of currency did not exist, traders used to follow a barter system. However, with time as international boundaries were formed, countries started coming up with their unique currencies in the form of gold and other exportable goods. The evolution of financial markets finally led to formal currencies like the rupee, yen, dollar, and yuan, which also defined the economic stability of a nation.
Currencies, as we know them today, are used as a trading tool. In simple words, currency trading can be explained as the buying and selling of currencies. This buying and selling happen in pairs. Two currencies are clubbed together and then traded at a future date with a fixed rate, with the help of a broker. This future contract is also known as currency derivatives.
Currency Trading is a great way to mitigate foreign exchange risk. However, one must note that unlike other types of trading (commodity, equity, stocks, etc.), currency trading operates via banks, organisations, and individuals. There is no physical market or dedicated exchange to carry out currency trading. For this reason, the forex market can function 24 hours a day around the globe, with no time restrictions.
Currency Trading in India was once only limited to the rupee forward market that was dependent on interbank markets. But since the introduction of currency futures trading in India on stock exchanges like the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE), the concept has gained popularity among many small investors too.
Currency Trading Online can be a tricky activity that requires the knowledge and expertise of a broker. Religare Broking offers investors the much-needed support and practical assistance to trade on currencies online and reap maximum profits. With 26 years of experience in the industry, we help individuals trade on NSE in futures, options contracts of USD/INR, and protect investors from losses caused due to currency movements.
Religare Broking offers ground-breaking research to help investors make better currency trading decisions. The years of experience in studying markets ensures a smooth trading experience for all our clients. In addition to this, our clients also have access to the following:
Currency derivatives are available in fours pair in India. These are US Dollars (USD), Japanese Yen (JPY), Euro (EUR), and Great Britain Pound (GBP) against the Indian Rupee(INR). Investors can also trade on cross-currency futures & options contracts on USD/JPY, GBP/USD, and EUR/USD.
Currency trading has many benefits for not only big organisations but also small and medium-sized investors. Here are some of its advantages that investors must know: