Zebu blog

Tag: currency trading

  • The Common Misconceptions About Currency Trading In India

    Trillions of dollars change hands every day on only one market – the forex market. If you’re interested in trading foreign currency online, this post is for you. Here are 10 of the most common FX trading myths.

    1. It’s easy to trade in forex.

    This is one of the most common misconceptions about forex trading. But it’s just plain false. Foreign exchange trading is hard and requires a lot of market research, planning, and knowledge of how the market works.

    2. It is necessary to predict movement

    Traders who do their FX trading online often make this mistake. They think that if they can predict how the market will move, they can make more money. But it’s really not that easy. Instead of trying to guess what will happen, it’s easier and more accurate to just follow the trend.

    3. You must make a substantial investment.

    One of the good things about the FX market is that you don’t have to spend a lot of money to trade there. In reality, the way the market works is based on the idea of leverage. Leverage is when you put in a small amount of money but can take on positions that are much bigger than what you put in.

    4. Using more leverage is smart.

    In line with what was said before, many traders think that the more leverage they use, the more money they could make. Even though this is true, the same strategy could also fail. For example, if your position doesn’t go as planned, you could lose a lot of money because you have more money at risk.

    5. You must always keep an eye on the market.

    This is another one of the most common mistakes people make when they trade FX online. Even though the market is open all the time, you don’t have to keep an eye on it all the time. Just set aside a certain amount of time every day and use it to keep track of what’s going on.

    6. It’s easy to get rich quickly.

    People often think that trading forex online will make them rich right away. But that’s not the case. To do well and make money, you would have to be very focused and do a lot of research.

    7. The most advanced forex strategies always work

    Even though they have their place and time, complex techniques may not always work. Your goal and the direction of the market should be the main things that tell you what strategy to use.

    8. The forex market is rigged

    If you make a few bad trades, you might start to believe this false idea. But it’s just a myth; there’s no truth to it. Because the forex market is so big, it is impossible for one business or a small group of businesses to control it.

    9. You can use the strategies of other people.

    Trading foreign currencies online is not as easy as it looks. Since traders’ expectations and the way the market is moving now may be different, the strategies that work for one trader may not always work for another. It is always better to come up with and use your own approach instead of copying what others do.

    10. The more trades there are, the better your profits can be.

    You don’t have to do a lot of deals to do online FX trading. If your plan is well thought out and your goal is reasonable, you can make money with just a few trades each month.

    Conclusion

    After the myths about it were busted, you can now join this financial market and start trading FX. To trade in FX, you would need a demat account and a trading account. You can quickly open a trading account and a demat account at Zebu.

  • Currency Trading In India – Why You Should Get In Now

    International corporate heavyweights have set up shop in India because of the country’s size, the scope for innovation, and the soundness of its financial sector. From a highly regulated environment to a more liberalised one, India’s robust and stable financial sector has gradually evolved.

    It has been ranked as the third most attractive investment location in the world by UNCTAD’s World Investment Prospects Survey. Due to the country’s liberal rules, the Indian market offers enormous potential for profit.

    Furthermore, currency trading in India is becoming the go-to place for traders from around the world to transact day and night, thanks to this dynamic environment. In India, the foreign exchange market, also known as the currency trading market, serves as a marketplace for the exchange of foreign currencies.


    Market information in a nutshell

    The NSE, BSE, MCX-SX, and United Stock Exchange all offer trading platforms for currency futures. With Zebu’s lowest brokerage fees, and our credibility as one of India’s best share market brokers, we guarantee that you will have access to the best trading accounts in the country.

    The currency market is open from 9:00 a.m. to 5:00 p.m. on weekdays. For currency trading, there is no cash or equity form, like we use in the Indian stock market. To begin trading, you will need a broker, but you will not require a DEMAT account in order to do so. In the foreign exchange market, we can only deal in the futures and options segments.

    Forex trading in India has shown an upward trend with the introduction of futures derivatives. Individuals and investors were previously only able to trade with banks and major corporations before this change. Both banks and enterprises were given greater freedom to store and trade foreign currencies as a result of India’s currency liberalisation. Derivative products were necessary as trading laws were loosened to facilitate the integration of global and local economies.

    What is the rationale for using derivatives to manage risk?

    As with other financial instruments, the value of a currency fluctuates widely in response to changes in the broader economy and politics. Inflation, foreign commerce, and interest rates are all critical, but the most critical is political stability. Governments can influence the value of their currencies by intervening in the foreign exchange market through the actions of their central banks. They either flood the market with their own currency to reduce the price or buy to raise the price in order to make a statement. The currency trading market in India can also become unstable due to large orders by large firms. Foreign exchange supply is increased when a country’s exports rise. Additionally, market participants’ expectations of national economic performance and their faith in the economy of their respective countries also play a role.

    Currency trading in India could be severely disrupted as a result of these operations. For a long time, any one entity can’t control India’s currency trading market because of its enormous size and volume.

    Because of their enhanced transparency, liquidity, counter-party assurance, and accessibility, exchange-traded currency futures are an ideal hedging instrument.

    Due to its size, volume, and frequency of trade, currency trading in India is a substantial contributor to the national economy. As businesses of all sizes make up the majority of the economy, everything that helps them grows the national economy. Currency trading can be a rewarding endeavour if you keep abreast of global market developments.

    You can explore these options and more with Zebu. Our lowest brokerage fees allow you to purchase the index fund of your choice effortlessly, making yours one of the best trading accounts for currency trading.