Indian Indices
Global Indices
Commodity (SPOT)
Currency (SPOT)
25 Oct 2014 | 1:15 PM
Why trade currencies with Religare!
Why trade currencies with Religare!
  • Enables instant trading through the Internet via desktops, tablets and mobile phones
  • Provides personalized and actionable currency research calls
  • Allows you to choose from several customized/multiple brokerage plans to suit your trading needs
  • Offers personal services through a dedicated team of relationship managers and dealers
Why trade in currencies?
The currency market is the largest and most liquid financial market
In this market, one country’s currency is exchanged for that of another at a fixed price.
With the advancement in technology and increased globalization, it is now possible for individuals, corporate entities, governments and almost anyone to take part in online currency trading. It offers two advantages to the traders: an opportunity to benefit from currency value fluctuations, and a chance to minimize loss from currency value fluctuations due to various factors.
How does it work?
Currencies are traded in derivatives, specifically in futures and options. Here’s more about these methods.
Futures
Through Religare, you can trade in currency futures on the National Stock Exchange (NSE). Futures trading allows you to enter into a contract (having a maximum period of 3 months), and take buy/sell positions in a currency of any country.
Trading in futures is not as complex as it sounds. If, during the contract period, the price moves as you had anticipated, you make a healthy profit, and vice versa.
 
Options
An option is a contract between two parties (the seller and the buyer) that gives the buyer the right, but not the obligation to buy or sell the security, on or before a particular date. To carry out this transaction, the buyer has to pay certain percentage of order value as margin.
There are two types of options: call and put. The former allows the trader to buy the currency at a certain price, while the latter allows him to sell it at a certain price.
Key participants in the currency markets are
  • Corporate/small and medium enterprises (SMEs)
  • Authorized dealers/banks
  • Central bank – The Reserve Bank of India
  • Individual retail traders
  • Money changers
Key reasons for currency movement
  • Trade and capital flows
  • Imports by oil marketing companies
  • Remittance by NRIs
  • Investment by offshore institutions in India
  • Indian offshore investments
  • Foreign Direct Investment (FDIs) and Foreign Institutional Investment (FII) flows
 
What are the platform’s features?
Religare not only offers a platform that enables effortless buying and selling, but also provides services and tools that help you make the most of the currency market. Mentioned below are a few features of our platform:
Choose the platform most suitable for you
Our multiple trading platforms can be accessed from anywhere, at any time. Apart from our online trading website that can be accessed from any device, we also provide trading applications for smart phones, desktop PCs and tablet devices to enable quick trading on-the-go. For heavy traders, our RIA platform offers streaming quotes to enable instant decision making.
Analyst research
We have a dedicated team of experts which provides extensive research calls and strategies on various currency derivatives.
Smart Portfolio Tracker
Say goodbye to hours of calculation and track the performance of your investments by gaining up-to-the-minute movements of your holdings on our Smart Portfolio Tracker. You simply need to enter the required details like date, price and quantity purchased, and hand over the hassle of maintaining your portfolio to our tracker. You can access this tracker on our website from anywhere in the world and view the performance of your portfolio without re-entering any data.
FAQs
Most of your doubts got answered here.

What is Currency?

Any form of money issued by a government or central bank and used as legal tender and a basis for Forex trade.

What is Currency Pair?

The two currencies that make up a foreign exchange rate. For Example, USDINR

What is Forex?

Foreign exchange is the simultaneous buying of one currency and selling of another. Currencies are traded through a broker or dealer and are executed in currency pairs. For example: the Euro and the US Dollar (EUR/USD) or the British Pound and the Japanese Yen (GBP/JPY). The Foreign Exchange Market (Forex) is the largest financial market in the world, with a daily volume of over $4 trillion. This is more than three times the total amount of the stocks and futures markets combined. Unlike other financial markets, the Forex spot market has neither a physical location nor a central exchange. It operates through an electronic network of banks, corporations, and individuals trading one currency for another. The lack of a physical exchange enables the Forex market to operate on a 24-hour basis, spanning from one time zone to another across the major financial centers. This fact - that there is no centralized exchange - is important to keep in mind as it permeates all aspects of the Forex experience.

What is Currency Exchange?

An association or a company or any other body corporate that provide the trading platform for currencies

What are the different types of participants in Currency Market?

There are two main groups that trade in currencies. About 5-10% of daily volume is from companies and governments that buy or sell products and services in a foreign country and must subsequently convert profits made in foreign currencies into their own domestic currency in the course of doing business. This is primarily hedging activity. The other 90-95% consists of investors trading for profit, or speculation. Speculators range from large banks trading 10,000,000 million currency units or more and the home-based operator trading perhaps 10,000 units or less. Today, importers and exporters, international portfolio managers, multinational corporations, speculators, day traders, long-term holders, and hedge funds all use the FOREX market to pay for goods and services, to transact in financial assets, or to reduce the risk of currency movements by hedging their exposure in other markets. The speculator trades to make a profit by purchasing one currency and simultaneously selling another. The hedger trades to protect his or her margin on an international sale from adverse currency fluctuations. The hedger has an intrinsic interest in one side of the market or the other. The speculator does not.

How is the trading done in Currency Exchange?

Currency Exchanges are based on the online trading system. It is an order driven, Transparent trading platform, which is reachable to various participants through the Internet, VSAT, and Leased line modes operated by members or sub brokers spread across the country.

What is a derivative contract?

A derivative is a product whose value is derived from the value of one or more underlying variable or asset in a contractual manner. The underlying asset can be equity, foreign exchange, commodity or any other asset. The price of derivative is driven by the spot price.

How are the Currency prices determined?

Currency prices are affected by a variety of economic and political conditions, but probably the most important are interest rates, international trade, inflation, and political stability. Sometimes governments actually participate in the foreign exchange market to influence the value of their currencies. They do this either by flooding the market with their domestic currency in an attempt to lower the price or, conversely, buying in order to raise the price. This is known as Central Bank Intervention. Any of these factors, as well as large market orders, can cause high volatility in currency prices. However, the size and volume of the Forex market make it impossible for any one entity to drive the market for any length of time.

How professionals determine prices in futures?

Two methods are generally used for predicting futures prices which are fundamental analysis and technical analysis.

Is delivery available in Currency Future contract trading?

No delivery is available in Currency Futures contract trading.

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