Forex Trading

Rupeezy offers a demat and trading account facility with zero account opening charge and attractive brokerage offers. Open an account online in a few minutes seamlessly, no physical paperwork!

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What is Currency trading?


Currency trading is the buying and selling of currencies to earn profit from their price movements. Similar to stock trading, forex trading can be done online through online trading portals or apps through registered brokers.

How does it work?

Currency or forex trading is done at forex markets where different currencies are traded. In India, currency derivatives like futures and options are traded through authorised exchanges.

There is no physical market for forex trading and trading is done electronically across different world markets round the clock Mon-Fri.

Benefits of Trading in
Currency with Rupeezy

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Lower Cost

Currency trading does not attract STT or CTT charges thus bringing the overall cost down as compared to other securities.

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Higher Liquidity

Currency markets have high liquidity due to global participants and continuous trading across time zones. Due to this, currency trading carries comparatively lower risk. 

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Larger Market

Forex market is wide with participants from across geographies. Traders can trade round the clock since currencies can be traded across international exchanges that operate round the clock in different time zones.

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Smaller Lot Size

The lot size in currencies is smaller and lower value; anyone can trade in currencies with small capital. Even beginners who do not want to allocate high initial investment can trade in currencies with small capital. 

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Multiple Currency Pairs

There are a wide array of currency pairs available to trade where traders take strategic calls on the strength and fluctuations in currencies of different economies.

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Hedge with other instruments

Traders hedge their risk in other investments with forex or hedge one currency pair against another to cover risk.

How Rupeezy Dock Works

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Rate of Inflation

Rate of Inflation: An economy with low
inflation rate will
have stronger currency and a high
inflation will result in currency

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Interest Rates

When interest rates are high in an
economy, there is higher inflow of forex
within the
economy, thus strengthening
the currency. 

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Political Stability

If there is political instability and
uncertainty in an country, it is less
attractive for foreign capital inflow and
likely to have higher imports with
unstable industry, leading to currency

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During a recession, the interest
usually low, resulting in
less inflow of forex and thus
currency depreciation.

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Fiscal Balance

Fiscal deficit means higher imports
than exports that impacts the
currency. Similarly, high
government debt implies higher
interest payments and lower forex
inflow, thus weakening the currency.

Frequently Asked Questions

Ans. Forex trading is the exchange of one currency against another and taking advantage of price movement between the two currencies. Unlike stocks, forex trading is done in currency pairs. Since forex markets are open round the clock, one can trade in forex without time limitations. Forex markets are highly liquid and continuous movement across currencies. It gives good opportunity for beginners or experienced traders to profit. Trading in currencies does not require a large upfront investment and one can start even with a small corpus. A beginner can allocate a small portion of their investments depending on their risk appetite since currency markets are volatile.

Ans: In India, currency trading is allowed in seven pairs: USD/INR, EUR/INR, JPY/INR, GBP/INR, EUR/USD, GBP/USD, USD/JPY. There are three exchanges for forex trading in India : BSE, NSE and Metropolitan Stock Exchange of India Limited. SEBI and RBI regulate currency markets.

Ans: Since there is no physical delivery of security in currency trading, you need not have a demat account, only a trading account is sufficient to trade in currencies.

Ans: Forex trading helps traders in earning a profit margin from movements in price of currencies by buying one currency and simultaneously selling the other. Forex markets are among the largest financial markets globally. The trading can be carried out at all hours, currency markets are highly liquid and offer a good opportunity to earn profit margins.

Ans: Yes, forex trading is legal in India, it can be done through registered brokers and authorised stock exchanges.

Ans: Forex markets are regulated by SEBI in India and also under the purview of the FEMA Act. All forex transactions are also governed by RBI.

Ans: Exchange Traded Currency Futures & Options are derivative contracts with a fixed expiry and contract size traded on currency exchange, similar to NIFTY and bank NIFTY derivative contracts.

Ans: The amount of underlying security in every derivative contract is denominated in lot size and its multiple. In India, the lot sizes as per currency pair are: USD-INR 1000 Dollars EUR-INR 1000 Dollars GBP-INR 1000 Dollars JPY-INR 1,00,000 JPY

Ans: Forex Markets have forex brokers, commercial and investment banks, central banks, forex dealers, authorities as main participants in the forex markets. There are multiple global forex markets with traders from all over the world.

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