Currency trading is gaining popularity in India in recent days.Here are some of the details about currency trading in India.
Currency futures can be traded at National Stock Exchange or MCX-Sx only.Margin trading in foreign based exchanges is not allowed. Any resident individual of india, Partnership firms, Corporates can trade currency futures.
Difference in commodity / stock futures and currency futures is that trading in currecy takes place in currency pairs of two different countries.E.g: Rupee-Dollar,Rupee-Pound Etc.while in stocks / commodity trading is done in that particular stock / commodity.
Like any other asset class rates of foreign exchage fluctuates due to various factors like demand-supply scenario,geo-political aspects,inflation,interest rates,trade balance etc.
Currecy futures were launched on 29 aug 2008 in India.
Currency futures offer good trading opportunity for traders in which traders can earn good amount of money by taking advantage of price fluctuations in currency futures.Also it offers hedging opportunities for importers / exporters whose business is affected by currency fluctuations.
