Trade with the No. 1 Broker in India

The rating of Forex brokers, which we have already talked about, is already ready, and each trader can check which trading platforms are considered the best Forex trading at the moment. To make a similar rating, sites like ours must analyze the various trading platforms, and then give a final assessment of each of them. The analysis of each broker is carried out taking into account various criteria - regulation, bonus system, etc. And all these facts are included in Forex trading in India reviews. The review is a mini-assessment of the Forex broker - each of the large list of sites that exist on the market today. This is why broker reviews are so important to rank sites that ultimately rank the brokers you see as potential replacements for your current broker or as really good brokers to start trading with. However, why should you care? And how can a Forex trading broker review be useful for a trader?

Services in the Forex market are provided by many different brokerage companies, each of which is trying to attract as many clients as possible. Naturally, there is serious competition in this area, in which brokerage companies are trying to win a certain stable niche in the service market and be the best in it. Each brokerage firm has its advantages and disadvantages. Your choice is Forex trading legal in India, it is not limited to one broker and you can trade with anyone, whenever you want. By comparing different brokers, you can choose the companies that offer the best service level for you and your style of doing business in the Forex market.

In our assessment, we tried to implement as many criteria as possible that we believe are the most important. We believe that the number of currency pairs offered by a particular broker is much more important than the availability of some less common type of payment from a broker.

So, our main criteria:

• software: how to do Forex trading. Simple and convenient it is to use it in work, functional characteristics;
• cash bonus (a bonus can be a very lucrative and attractive offer);
• accepted types of money transfers (without a suitable way to make a deposit, you will not be able to trade);
• additional services such as CFD transactions and commodities.

Pros and Cons of Trading Forex

The company provides brokers with the opportunity to perform trading operations using the classic MT4 terminal. This is the best Forex trading platform in India, which you can:

• install on a computer or laptop;
• download as mobile applications for Android or iOS;
• open in any browser window without additional installations.

The terminal allows access to all assets at once - currency pairs, stocks, indices, raw materials, etc. It already contains a set of built-in indicators, the settings of which the user can change at will. Traders also appreciate this program for the fact that other indicators can be added to it. Another plus is the ability to use trading advisors that can be easily integrated into the terminal.

The company does not offer bonuses, does not hold promotions or contests among traders. However, it allows you the opportunity to take part in the affiliate program. If a client attracts a new trader, he receives a monetary reward. Its value is determined as a percentage of the winning positions of the invited user.

The main disadvantage of the company is that its website is only available in English. On the other hand, this is a truly honest broker, which is confirmed not only by the presence of licenses from regulators but also by numerous positive customer reviews. Also among the pluses can be noted the presence of a free demo account and a large number of tradable assets. Therefore, if the client is ready to independently translate the page, master the personal account in English and find the link on how to start Forex trading.

The Bottom Line

Forex trading legal in India has a simple goal - to generate income from speculation. The income comes from the fact that we buy one currency cheaper, and sell it after a while at a higher price.

In this chapter, we will look at the practical aspects of working in the market: what is Forex trading and how does it work, what funds are needed to enter the trade, and also what is Forex trading percentage of the return on capital you can get by working as a trader in the market. The word "work as a trader" is not a slip of the tongue. Trading in the Forex market implies the presence of specific knowledge and skills, in addition, the one who has deeper knowledge and refined skills will quickly achieve success in work.

Currency trading in the market is very similar to the operations performed at a regular exchange office. In addition, you can theoretically also make a profit by buying currency at an exchange office today and selling it tomorrow. In the process of reading this chapter, you will be convinced that the Forex market offers opportunities to earn amounts hundreds of times higher than those that allow bank exchange offices to earn on currency fluctuations. And this is when using the same amount of capital.

Imagine a situation: you have a capital of $1,000 and intend to profit from changes in the exchange rate. You go to the nearest exchange office and see that the US dollar/Japanese yen rate is 91.80/93.20. The bank is ready to buy 1 US dollar from you for 91.80 Japanese yen and sell you 1 US dollar for 93.20 Japanese yen. According to your estimate, soon, the US dollar should fall against the Japanese yen, and you decide to exchange: 91.80*1.000=91.800 Japanese yen.

If you immediately changed your mind and decided to exchange the purchased yen for US dollars, then under the terms of the exchange office you would receive 91.800/93.20=984.97 US dollars. That is, such a trade would bring you a loss of $15 and 3 cents.

What Is Foreign Exchange (Forex)?

What is money management: describes the strategies and methodologies used to avoid losing funds. Money management in the foreign exchange market requires knowledge in various financial areas, as Forex trading means. First, let's find out why the foreign exchange market is so-called. In the foreign exchange market, the currency of one country is exchanged for the currency of another. The comparative value of different world currencies changes regularly. Factors such as the stability of a country's economic development, gross national product, inflation, interest rates, and even national security and international relations play a role in the currency market. For example, if a country has an unstable government and a military coup or participation in war is expected, the country's currency may fall in value compared to the currencies of other countries.

Forex trading India or the foreign exchange market deals with money. Money from all over the world is sold, bought, and traded. In a Forex trading tutorial, any of us can buy and sell currencies to make a profit. In the process of exchanging currencies, you can buy one currency, sell it and make a profit. For example, a broker can buy the Japanese yen when the yen rate has risen against the dollar, and then sell the yen and redeem the dollars, making a profit on the difference in rates.

Understanding Foreign Exchange

Here's an even clearer way of explaining this principle using the same example:

Let's exchange your €500 for US dollars and get $700, but you didn't spend a single dollar and came back with $700 in your wallet. After changing the exchange rate from $1.40 to $1.30, you get €538.5 back instead of €500. And you earned €38.5 simply by keeping your money in dollars while the exchange rate changed. This is exactly how Forex trading in India legal in the foreign exchange market takes place. We buy a certain amount of currency, hold it until the exchange rate changes, and then exchange it back at the changed rate, receiving the income from the operation.

Trading in the Foreign Exchange Market

Despite the differences in the conditions of currency exchange at a bank office and on Forex trading is legal in India, the principle of speculation remains the same: you must first buy a currency and then sell it - and sell it at a higher price. Or first, sell the currency on the open market and then buy it back cheaper. Buying or selling one currency for another in the Forex market is called "opening a position". The opposite action - selling a currency that has risen in price, or buying a currency that has fallen in price - is called “closing a position”. It is during the closing of a position that the result of your transaction is automatically calculated - and the difference in the value of the currency is credited to your account, or debited from it if the currency was sold cheaper than bought. Opening a position implies buying or selling the base currency.

It is customary to call a purchase a "long position", a sale - a "short" one. This terminology is explained by the exchange traditions, when merchants in goods "lengthened" their inventories by buying goods on the exchange, or "shortened" them by selling them. When a Forex trader says “I opened a long position on the euro/dollar pair”, it is Forex trading meaning that he bought the European currency for US dollars.

Differences in the Forex Markets

To maintain and increase their assets, many entrepreneurs invest in investments. The ideal option for many issuers is a guide for Forex trading in the financial market, as it provides for high income. However, there is an important rule that every trader must follow: thoroughly learn Forex trading, the basic concepts, and methods of performing trading operations. Success and future material well-being depend on this.

The Spot Market

On the world stage, the spot market is the market where the special terms of settlements between the parties to the transaction are in effect. The key requirement of such a market is the simultaneous conclusion of the transaction and the instantaneous emergence of the buyer's ownership of the goods, while the seller immediately receives his payment.

The spot market can be the market for stocks, bonds, and all other world financial markets for precious metals and other raw materials. A currency spot is a 2-sided contract, where one of the parties to the transaction transfers a certain amount of Forex currency trading in exchange for receiving the agreed amount of another currency from the other party to the transaction within 2 working days from the date of the transaction.

In other words, the spot market is a platform where any asset can be sold/bought exclusively for cash the world Forex trading, provided that all trading Forex conditions are met. All financial markets, regardless of their characteristics, can be conditionally divided into 2 types: spot market and derivatives market. The derivatives market is the execution of approved transactions within a certain period agreed by the parties.

The specificity of the spot market is that the transaction is negotiated at the asset value that was fixed during the discussion of the terms of the transaction. Being aware of all the key nuances of the spot market is necessary for every trader who wants to conduct profitable trading on the global financial markets.

Among the most important features of the Forex market trading, it is necessary to highlight the fact that:

• there is no interest rate on the value of assets;
• currency rate quotes are unified and fixed;
• the formation of the price of an asset is directly related to the ratio of supply and demand for it;
• volatility is much higher here than in the derivatives market.

The spot market provides for the turnover of only real assets that are instantly available for use. Here all calculations are carried out instantly and in full on Forex trading online.

The Forward Market

There are two instruments used in the Forex trading company forward market:

• irreversible forward deals;
• exchange transactions, or swaps (swaps).

A swap is a combination of a spot trade and an irreversible forward trade. According to the Bank for International Agreements, the forward sector accounted for 57% of the foreign exchange market in 1998. In terms of US dollars, out of the total daily turnover of the foreign exchange market of $1.5 trillion, forwards account for 900 billion.

The terms of fulfillment of forwarding contracts can range from 3 days to 3 years. Any transaction with a maturity that exceeds the maturity of the spot market can be considered a forward agreement, provided that for both currencies the contractual maturity falls on a trading day. The forward market is decentralized, and its participants around the world, regardless of the type of transactions, can work either directly with each other or through a broker.

The forward price has two main parts:

• market value (exchange price);
• forward spread.

The main role in setting the price is played by the exchange value. Forward spreads, like spreads in the spot market, are measured in points (or pips) and represent the difference between the bid and ask prices. The size of the spread depends on the duration of the forward contract, which thus affects the final size of the forward price.

The Futures Market

Future is a financial instrument responsible for the delivery of a certain commodity in the future at a certain price. The buyer of the futures undertakes to purchase the goods within a certain agreed period. The seller of the futures undertakes to sell the goods within a certain agreed period. Both obligations must be fulfilled in the future, at the price that was set at the time of the sale of the futures.

The futures market is more liquid than the commodity market, which provides a constant demand for futures. A huge number of traders from all over the world trade in the futures markets every day. The goal of each of them is to maximize profits from the trades they make. Futures trading takes place on futures exchanges such as NYMEX (New York Mercantile Exchange) - New York Mercantile Exchange, etc.

Trading on the futures markets is very similar to trading on the Forex online trading financial exchange. The futures market is very similar to the trading in Forex exchange and the same rules for technical and fundamental analysis apply. Such a huge similarity of the markets is because the online Forex trading market was formed after the futures market, and all the tools used when trading in the foreign exchange market are tools borrowed from the futures market. But despite such a huge similarity between the futures and financial markets, they still have differences.

Example of Foreign Exchange

Now let's calculate, using real examples about Forex trading, how much income we can get from a regular transaction in the Forex trading basics market. Let's imagine that a novice trader predicts the growth of the Japanese yen against the US dollar (just like in the example with the currency exchange office). The current quotation of the USD/JPY currency pair at Forex is 92.50/92.53. As you can see, the size of the spread is only 3 points, which is a common condition for the market and ten times less than in a currency exchange office.

Our trader opens a short position on this currency pair (traders usually say “sell a pair”) with a volume of 1 mini-lot at the price of 92.50 Japanese yen for one US dollar. The quote of the currency pair moves in the right direction and after a while the trader closes the position, buying out the fallen dollars for the rising yen for 92.15.

Thus, the profit on the deal amounted to +35 points. To calculate the income, the trader needs to convert the profit points into the equivalent of US dollars, because of the income he received in the quoted currency - Japanese yen. To do this, he divides 0.35 by the rate at which the US dollars were sold and gets: 0.35/92.50=0.0037. This equates to 37 pips in US dollars, multiplying this value by the number of dollars sold (10 thousand) and we get 37 dollars of profit.

Please note that with the involvement of the same amount of capital, we managed to earn $20 more, while the quote of the currency pair changed by only 35 points! Such movements in the market occur within an hour, and sometimes within a few minutes. As a rule, active traders make dozens of transactions within one day, which allows them to increase capital and trade in larger volumes, and, accordingly, achieve great results with the same amount of time and effort.

Frequently Asked Questions

How to start Forex trading for beginners?

You need to register a trading account with an online Forex trading company broker such as AGEA. After that, you can start using their client software to buy and sell different currencies. It only takes 5 minutes!

Who owns the Forex market and where is it located?

Forex is not owned by anyone in particular. It is an interbank market where all transactions take place directly (or through brokers) between the seller and the buyer. It does not directly depend on the government of any country and will exist as long as the current world Forex trading system exists.

When can you make transactions in the Forex market?

The International Foreign Exchange Market (Forex) is open from 22:00 GMT Sunday (Australian trading session opening) until Friday 22:00 GMT (closing of the US trading session).

What is the margin?

Margin is the money you must have in your brokerage account to secure a position. Different brokers have different requirements for the amount of free margin required to maintain an open position.

What are long and short positions?

A long position is a buy position, that is, a position that makes a profit when the price rises.

A short position is a sell position, that is, a position that makes a profit when the price goes down.

What is the best trading strategy?

There is no such Forex trading strategy. You must constantly create and develop your strategies for every possible market situation if you want to make a profit. Specific Forex trading news strategies may only be relevant for a specific period and specific currency pairs.

Why you should choose us

Forex is the most liquid platform. Its retail part appeared with the innovation of the webspace. This admitted retail traders to trade Forex through a variety of trading platforms. It was during this time that the first online Forex trading broker began to operate.Trillions of US dollars are currently traded how Forex trading works, with retail traders accounting for almost 7% of the total of about US $250 billion in daily turnover. Why is the Forex market so large? As you can imagine, one money is bought online in another coin, and this creates a fairly significant flow of funds. So, the basics of Forex trading is the global space to trade currencies.