Currency trading is buying and selling of currency pairs at current or determined prices to make profits through Futures and Options. It is done over a currency trading exchange that helps you connect with the currency trading market called the Foreign Exchange (Forex) Market. The Forex Market is a global decentralized or over-the-counter market that decides foreign exchange rates for different currencies. Ever wondered which is the biggest and most liquid market in the world. It is not equites or commodities but foreign exchange market, also known as FX, forex, or currency market. Globally, trading in currencies primarily takes place in Over-the-Counter (OTC) market, where large financial institutions, corporate and hedge funds trade amongst each other depending upon their requirement.
Currency
Advantage /characteristic
- Lower margin:
Margin normally varies from 2.5%* to 5%*, depending upon currency pairs and volatility. USDINR has the lowest margin of all currency pairs. - Trade across futures, options
- Hedge against risk
- Diversification of portfolio
- Invest, Trade, Hedge, Speculate
Who should invest in Currency?
It’s important to understand that investing your entire corpus into equities is not a smart financial move. There are several factors such as your age, risk appetite, return expectation, and investment tenure, which impact how much you should invest in equity. Diversification across different asset classes and also in different shares and equity funds is essential to reduce the risk. It is advisable to take stock recommendations only from qualified financial advisors.
- Investors who do not have time to study the market
- Investors who are risk-averse
- Salaried employees
- Business persons
- Traders