Trading in currency derivatives
- If you want to safely and transparently trade in the financial market, choose currency derivatives.
- Currency or foreign exchange is the largest financial market to trade on an average of over 4 trillion dollars daily.
- Hence there is enough liquidity to trade round the clock for five days to sell the currency derivatives over the counter to book profits.
Currency Derivatives: Meaning, Types, Uses, and More !
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Easy and Quick Trading
Since there is no physical exchange, unlike other markets, it is easy to trade in it easily and quickly. Also, with many central banks and government institutions worldwide, each player can only determine its rates.
Safest and Most Profitable
Investment Option
Currency trading has become one of the retail investors' most
profitable and safe investment options worldwide. It trades
currencies in pairs like GBPINR, EURINR, USDINR, JPYINR,
etc., on a pre-set rate and date in the future.
There are three currency derivatives:
futures, currency options and currency swaps.
Where to trade currency
derivatives in India ?
- In 2008, trading currency derivatives kickstarted for Indians to make safe profits. Though its daily trading volume is well over 44,000 crores, central banks, financial institutions, importers, and exporters still dominate it to leverage their risks. But now, many retail investors are making safe profits by trading in the currency market, which will increase in the future because of its many benefits.
Why trade in currency derivatives ?
- Trading in currency derivatives is like trading in future stocks and options.
- You can buy huge value currencies with minimum deposits to make profits even from the small tick size of less than a paise.
- The market lot for British pounds, Dollars, and Euros is 1000 units, and for Japanese Yen, it is 10,000 units.
- Currency derivatives are used to safeguard businesses against currency fluctuations from foreign currencies such as the Euro Dollar & Yen
Benefits
1
Small Tick Size
Unlike in stocks, the tick size is small and is one-fourth of a paise or 0.0025 on most days except for any volatile trading because of geopolitical, natural disasters and other reasons.
2
Easy to Liquidate
With huge trading volume, easy
to liquidate currency derivatives
without delay to book profits or
losses.
3
Overcome the Challenge of Foreign Currency Exchange Risks
Importers, exporters, business
houses, and even individuals
can use it to hedge their foreign
currency exchange risks.
4
No Monopoly
No single control by operators as the players include central banks, financial institutions and others to be safe
5
Reduced Costs
Reduces costs because of no
STT as in stocks or CTT as in
commodities, and brokers charge
only flat charges of a few rupees
even for huge value contracts.
6
Perfect For Beginners
Ideal for beginners to start with
low investments and trade huge
value quantities to know the risks
of making huge profits later.
