Next step that I would recommend is to get familiar with the common treminology used in Forex trading, strategies for efefctive trading and dealing with emotions issues while trading. I found a nice course where you can learn all the basics of forex trading. I came across it while going through FxDialogue website. This forex course is aimed at the novice and the seasoned trader alike. The course covers all aspects of Forex which involves everything from History of the Forex Market to the role that Psychology plays in trading. The course is organised in 7 sections and will equip you with everything you will need to understand how and why the Forex markets operate and even how to deal with situations that plague the most advanced forex traders. At the end of each section the reader will find a short quiz which will help to consolidate what has been learned. Dont read it all in 1 day. take your time and digest all that you read.
Forex currency trading
Page no : 3
Nanda Roy
(student)
(25 Points)
Replied 30 November 2011
Spread
The difference between the sell quote and the buy quote or the bid and offer price. For example, if EUR/USD quotes read 1.3200/03, the spread is the difference between 1.3200 and 1.3203, or 3 pips. In order to break even on a trade, a position must move in the direction of the trade by an amount equal to the spread.
Pip
The smallest price increment a currency can make. Also known as points. For example, 1 pip = 0.0001 for EUR/USD, or 0.01 for USD/JPY.
Pip Value
The value of a pip. Pip value can be either fixed or variable depending on the currency pair. e.g. The pip value for EUR/USD is always $10 for standard lots, $1 for mini-lots and $0.10 for micro lots.
Lot
The standard unit size of a transaction. Typically, one standard lot is equal to 100,000 units of the base currency, 10,000 units if it's a mini, or 1,000 units if it's a micro. Some dealers offer the ability to trade in any unit size, down to as little as 1 unit.
Nanda Roy
(student)
(25 Points)
Replied 01 December 2011
Heres an example of how Forex trade works: Assume you have a trading account at a broker that requires a 1% margin deposit for every trade. The current quote for EUR/USD is 1.3225/28 and you want to place a market order to buy 1 standard lot of 100,000 Euros at 1.3228, for a total value of US$132,280 (100,000 * $1.3228). The broker requires you to deposit 1% of the total, or $1322.80 to open the trade. At the same time you place a take-profit order at 1.3278, 50 pips above your order price. In taking this trade you expect the Euro to strengthen against the U.S. dollar. As you expected, the Euro strengthens against the U.S. dollar and you take your profit at 1.3278, closing out the trade. As each pip is worth US$10, your total profit for this trade is $500, for a total return of 38%. Please note that the above stateent is an illustration only.
Meenakshi
(Equity Research)
(30 Points)
Replied 21 December 2011
| Originally posted by : shrayali | ||
 |
I know this post was made 3 months ago but I can reply your query now. I am new to this forum but I am trading on currency exchanges since last 1 year. I have tried many brokers for the currency trading but I found Non-dealing Desk brokers best to help you in currency trading. I have even worked with several non dealing desk brokers, but i found Nordfx (as suggested by your friend) better than other brokers. They make their client first understand the Forex market ,the techniques of trading ,give online training & then ask the clients to invest in currency trading. The co. gives other supports also as and when required by the clients. You can try nordfx, I am having gud time with them. |
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subhash jangir
(na)
(38 Points)
Replied 22 December 2011
Liberalised Remittance Scheme
(updated up to September 17, 2010)
The Reserve Bank of India had announced a Liberalised Remittance Scheme (the Scheme) in February 2004 as a step towards further simplification and liberalization of the foreign exchange facilities available to resident individuals. As per the Scheme, resident individuals may remit up to USD 200,000 per financial year for any permitted capital and current account transactions or a combination of both. The Scheme was operationalised vide A.P. (DIR Series) Circular No. 64 dated February 4, 2004.
PART A :
Q.1. What is the Liberalised Remittance Scheme of USD 200,000?
Ans. Under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed to freely remit up to USD 200,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both.
Q.2. Please provide an illustrative list of capital account transactions permitted under the scheme.
Ans.. Under the Scheme, resident individuals can acquire and hold immovable property or shares or debt instruments or any other assets outside India, without prior approval of the Reserve Bank. Individuals can also open, maintain and hold foreign currency accounts with banks outside India for carrying out transactions permitted under the Scheme.
Q. 3. What are the prohibited items under the Scheme?
Ans. The remittance facility under the Scheme is not available for the following:
i) Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery tickets/sweep stakes, proscribed magazines, etc.) or any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000;
ii) Remittance from India for margins or margin calls to overseas exchanges / overseas counterparty;
iii) Remittances for purchase of FCCBs issued by Indian companies in the overseas secondary market;
iv) Remittance for trading in foreign exchange abroad;
v) Remittance by a resident individual for setting up a company abroad;
vi) Remittances directly or indirectly to Bhutan, Nepal, Mauritius and Pakistan;
vii) Remittances directly or indirectly to countries identified by the Financial Action Task Force (FATF) as “non co-operative countries and territories”, from time to time; and
viii) Remittances directly or indirectly to those individuals and entities identified as posing significant risk of committing acts of terrorism as advised separately by the Reserve Bank to the banks.
If someone says to deposit in INR and then you are allowed to trade in EUR_USD then he is giving loan in USD and that is external commercial borrowing(ECB) and hence regulations of RBI apply.
More over indian residents are not allowed to trade in instruments that have leverage.
Only possibility is to invest in stocks and also margin funding on the investment is not allowed since that becomes ECB.
Unless and until someone is extremely confident that he will give the taxman a slip time and again, it is not possible to trade non INR currency pairs till the SEP 2010 notification is repealed.
subhash jangir
(na)
(38 Points)
Replied 22 December 2011
Here is the original page from RBI site which can clear any doubts and need no advice of anyone about ligality of Forex Trading in India.
We can trade only in currency derivatives like futures(in paring with INR. like USDINR,EURINR,JPYINR,GBPINR), not spot trading like EURUSD...and many more being Indian residents.
Thanks
Click on this link or scroll down.https://www.rbi.org.in/scriptttts/BS_PressReleaseDisplay.aspx?prid=23941
| Home >> Press Releases - View Press Releases | ||||
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Date : 21 Feb 2011 RBI Advisory on Overseas Forex Trading through Electronic / Internet Trading Portals
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The Reserve Bank of India has today clarified that remittance in any form towards overseas foreign exchange trading through electronic/internet trading portals is not permitted under the Foreign Exchange Management Act (FEMA), 1999. The Reserve Bank has also clarified that the existing regulations under FEMA, 1999 do not permit residents to trade in foreign exchange in domestic / overseas markets. Residents are, however, permitted to trade in currency futures and options contracts, traded on the stock exchanges recognised by the Securities and Exchange Board of India (SEBI) in India, subject to the conditions specified by the Reserve Bank from time to time. Background The Reserve Bank had noticed advertisements issued by electronic / internet portals offering trading or investing in foreign exchange with guaranteed high returns. Many companies even engage agents who personally contact gullible people to undertake forex trading/ investment schemes and entice them with promises of disproportionate / exorbitant returns. The Reserve Bank of India cautions the public not to remit or deposit money for such unauthorised transactions. The advice has become necessary in the wake of many residents falling prey to such tempting offers and losing money heavily in the recent past. Alpana Killawala Press Release : 2010-2011/1196 |
Meenakshi
(Equity Research)
(30 Points)
Replied 26 December 2011
All the Forex Trading is regulated by Financial Service Commission(FSC) of every country. RBI dose not have any access or control over these FSCs.Trading in International forex is 100% Legal and RBI cannot stop this trade as it is not under its jurisdiction.
Moreover RBI allows investment upto USD 200,000 in Commodities & Equity with International equity & commodity brokers.
Currently I am trading with NordFx In Commodities & Bullions, and till date faced no problem. It is a good firm & work in a legal environment.
Ramalingam K
(Founder & Director - Holistic Investment Planners (P) Limited)
(21077 Points)
Replied 06 May 2014
Ronald Vincent
(2 Points)
Replied 08 September 2023
I want to express my gratitude for sharing such an informative blog post. The depth of your research and the clarity of your explanations are commendable. By immersing myself in the guidance provided by <a target='_blank' rel='nofollow' href="https://tinyurl.com/Tradingroom1" target="_blank">Maximizing the Potential of Forex Trading: An In-Depth Guide</a>. I orchestrated my path to success. The guide's multifaceted strategies and market wisdom empowered me to make informed trading decisions, resulting in a remarkable journey of growth and achievement in the world of forex.
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