As a citizen of India, you can trade currencies on the National Stock Exchange (NSE), the Bombay Stock Exchange (BSE) and the Metropolitan Stock Exchange (MSE). Established in 1992, the Securities and Exchange Board of India (SEBI) was created to monitor and regulate currency activity in India. It is an autonomous authority that protects forex issuers, investors and forex related agencies. Forex brokers and stock exchanges must be licensed by SEBI to operate in India.
Traders based in India can trade currencies on the National Stock Exchange (NSE), Metropolitan Stock Exchange (MSE) or Bombay Stock Exchange (BSE). In 1992, the Securities and Exchange Board of India (SEBI) was established to monitor and regulate the foreign exchange market in India. In India, however, forex trading platforms are banned. While you can't trade directly on the forex market, you can trade currencies through the stock exchange.
Under the Foreign Exchange Management Act (FEMA), binary trading is not allowed. While trading in foreign currencies is allowed, it does come with certain restrictions. Like stocks, you can buy or sell a currency based on what you think its value is or simply by strategizing where its value is directed. It is legally allowed to trade Forex on Indian exchanges such as BSE, NSE, MCX-SX.
However, you can hit big or lose everything just as easily. If you think a currency will increase or decrease in value, you can buy or sell it accordingly. With a market of this high flexibility, finding a buyer when you sell and vice versa is much easier compared to any other market space. India is a country with different cultures and a constantly growing economy.
In India, currency trading (forex) is a new platform with greater possibilities. Forex trading is not entirely legal. Only currency exchange including Indian Rupees (INR) is allowed. The weakness of the INR against the US dollar is the main reason for this restriction (USD).
In a nutshell, the Indian government has limited trade for Indian residents to only trade currency pairs that are compared to INR (Indian Rupee). Identify well in advance the point at which you will withdraw from a trade or the point at which it will no longer be sustainable for you to trade. Price Action Strategy: Price Action Strategy is the Most Used Strategy for Forex Trading. Unlike stocks or commodities, currency trading is not conducted as exchanges but between two parties directly, categorically, on an over-the-counter (OTC) market.
At this juncture, due consideration should be given to the fact that under the Foreign Exchange Management Act (FEMA) 1999 or the FEMA Act, you may face imprisonment or be fined for illegally trading Forex in India. At this point, it should be noted that under the Foreign Exchange Management Act (FEMA) 1999, traders could be fined or even end up in prison if illegal currency trading takes place in India. On the other hand, forex trading is considered legal when done through certain forex trading platforms when the base currency is INR. Position trading: Position trading is mostly used by experienced veteran traders and involves analyzing charts at the end of the day.
Traders can trade currencies on the National Stock Exchange (NSE), the Bombay Stock Exchange (BSE) and the Metropolitan Stock Exchange (MSE) if they are Indian citizens. The first thing you need to do to start trading in the forex market is to contact a broker with international reach, since the market operates in locations such as New York, London, Tokyo and Singapore. Whatever the trading style of the trader, he must control his use of leverage and focus attention on market movements to avoid or reduce currency losses. Breakout trading: In this type of trading, a trader enters the market the moment the market emerges from a previous trading range, i.
The Indian government has limited trading for Indian citizens to only trade currency pairs that are compared to INR. However, it should also be noted that there is absolutely no prohibition for NRIs to trade foreign exchange in India. . .