Currency trading involves purchasing and selling foreign currencies in the market. Unlike stock and commodity, you do not require a Demat account for trading in currency. You can trade currencies with the currency trading account. The currency market remains open for 24 hours throughout all the days of the week as it involves different countries. The currency trading time depends on the location and the marketing opening time of that particular country.
You can trade in forex derivatives in India in BSE and NSE exchanges. Currency trading is regulated by RBI and SEBI as it involves FOREX transactions.
Currencies are always traded in pairs. You can trade in currency Futures and Options in four currency pairs and three cross-currency pairs. The four currency pairs are USD-INR, EUR-INR, GBP-INR and INR-JPY. Similarly, the widely used three cross-currency pairs are EUR-USD, GBP-USD, and USD-JPY.
The currency market is more dynamic and volatile compared to other markets. You can follow any two major currencies like USD and GBP to follow the currency market and derive a strategy.
You can now open your Currency trading account online with Flattrade. Exchange rate fluctuations give an advantage when you trade in currencies. The currency trades are always executed in pairs as said before, e.g. EUR-USD, GBP-USD, and USD-JPY. Here’s an easy guide on how to open a Flattrade currency trading account: