InvestorQ : How is currency trading done in India?
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Mitali Bhutta made post

How is currency trading done in India?

Answer
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Mahima Roy answered.
2 years ago


Currency trading in India is emerging as an alternative trading opportunity. Currency trading for long was a domain of banks. Only after the introduction of currency futures on NSE and BSE have retail investors also been permitted to trade in currency pairs. So how to open a forex trading account in India and how to start forex trading in India. Your broker will allow you to trade currencies in your existing trading account itself, the only condition being that some additional approvals are required. Currency derivatives are also cash settled so there is no currency delivery against contracts. But they are useful for hedging your currency risk. Like if you are importer and if you want to protect against falling rupee you can buy the USD/INR pair and hedge your risk. The reverse holds true if you are an exporter and I that case you can sell the USD/INR pair and hedge your risk.