What is Forex trading?

You might be surprised to know that FOREX (acronym for Foreign Exchange) is the largest market in the world in terms of daily trading volume, close to USD 7 trillion. It is also the oldest market.

Also called FX market or Currency market, forex is open 24 hours a day and is dispersed across several global hubs. A trader who holds deposits in one or more currencies for trading is said to have a forex account. One places trades in the forex market based on how the foreign currency market is performing.

Currency trading is quite different from trading in the Equities or Commodities segments. This is because trading happens in currency pairs. When you trade currencies, you simultaneously buy one currency and sell another, unlike when you buy Equities or Commodities. On the forex exchange market, cash settlements are the norm.

Designed for the serious

Ask any market veteran and you will know that consistently making money from the markets is not easy at all. It requires a serious approach that involves serious research, serious risk analysis and serious discipline. Our full-service model, which consists of an expert Research team, experienced Relationship Managers, wide network of branches, information packed trading & investing platforms and education is designed to help you understand the required serious approach. It also helps you get the power of our experience and expertise on your side

For those serious about becoming "Stock Market ka Sher"

The one thing required to become "Stock Market ka Sher" is to constantly improve your knowledge and understanding about investing and trading. Education is a core pillar of how Sharekhan wants to help new comers and experienced customers both - so we offer zero cost & paid education modules to our customers. Learn about online share trading and share market investment at your pace.

Get access to baseline learning about the market, whether you want to do online trading, invest or both!

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Trading in Forex

The exponential boom in telecommunications has complimented trading in forex. Because trading happens in currency pairs, each traded currency is a separate market. For example, the USD market or the GBP market.
A significant number of interbank transactions, which frequently determine currency values, take place on the foreign exchange market. The need for traders to settle overseas trades gave rise to the forex markets. The FX market has a significant impact on global financial liquidity.
In India, well-known exchanges like NSE, BSE and MCX provide trading in Currency Futures. The trader in this case must create a currency trading account with the broker, and trading takes place from 9 am to 5 pm. The trades are completed in cash and don't require any physical delivery.

Benefits of opening a Forex trading account

Low Risk and Low Margin

Due to low volatility, risk is minimized. Can trade with lower margins compared to Equity and Commodities.

Monthly and Weekly alternatives

Monthly and Weekly Futures and Options are available to trade and hedg

Truly international market

The forex market is extremely large, and traders from all around the world participate in it. The market's sheer scale offers traders significant advantages.

Excellent for newcomers

Forex is a fantastic alternative if you're a beginner trader who wants to start with minimal deposits and learn about the market.

Higher liquidity

To enable you to build a large position, the brokers give you the choice of borrowing money against a little investment.

Free market

There is no single player and no one in charge of the market when there are many participants. Because there is free competition, prices are influenced by outside forces, such as the economy.

Low charges

Without having to worry about the high cost of transactions, you may start forex trading with a small sum. The fees paid to the broker are included in the transaction cost & are typically insignificant.

Benefit for Hedgers

Without the need for documentation of your Forex exposure, you can hedge your positions on the Exchange platform with fair price quotations.

How to open Forex Trading account?

At Sharekhan, it takes just 3 steps to open an equity trading account (also known as a Demat account). And once you have a Demat account, activating the Currency (Forex) segment is seamless and easy. Let’s see the steps:

STEP 1

Fill in your basic personal details

STEP 2

Upload a few KYC documents (like PAN, Aadhaar, cancelled cheque) that are SEBI-mandated to open a Demat & Trading account

STEP 3

The Demat & Trading account is activated post verification

STEP 4

To activate the Currency segment, Proof of Income is to be submitted, which can be done 100% online via the Sharekhan app or website

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