What Is The Forex Exchange Market :-
Do beginners want to know About what is forex exchange market? this article For the forex accounts for beginners. The Forex stands for Foreign Exchange. Foreign trading is the simplest trading in Foreign currencies from different countries against each other. For example The US Dollar against the Japanese Yen.
The Forex market is also known as the FX market. People also search the What is Forex Market Cap? Forex market is the world’s most traded market with $6.6 trillion per day in 2020. It is larger even the stock market with daily volume.
The US stock market trades about $ 257 billion in 1 day but in foreign markets, it is only a fraction. Market is open 24 hours for trade 5 days a week across by banks, institutional and individual traders in the world. forex market is unlike other financial markets.
There is a centralized marketplace for forex currencies trade over the counter in the market is open at the time. India forex market timings are 9:00 Am To 5:00 PM. Trading can be done in Indian time pairs from 9:00 am to 5:00 pm (IST) and in international pairs from 9:00 am to 7:30 pm.
Is the Forex market legal in India?
Forex trading is legal in India only through authorized and registered brokers with the securities exchange board of India (SEBI). Trading through online brokers which are not registered in Sebi is a non-bailable offense in India and has serious legal consequences. Forex account under 18 is not allowed for minors. it’s allowed at when age complete there age of 18.
How does the Forex market work:
The market decides the value. Also known as the exchange rate of the majority of the currencies. Foreign exchange can be simply changing one currency to another currency at the local bank. It can also affect the trade currency on the foreign exchange market (forex market). For example, a trader is speculat for the central bank will ease monetary policy and that 1 currency will toughen alternatives to the other currency.
When the trading in currencies they are list in pairs, such as USD/INR, JPY/USD, or USD/RUB These represents the U.S. dollar (USD) versus the Indian Rupees (INR), the Japanese yen (JPY) versus the USD, and the USD versus the Russian Ruble (RUB).
There will also be a price combin with each pair, such as the 74.895. If this price was combin with the USD/INR pair, it means that it costs 74.895 INR to buy 1 USD. If the price increases, then it now costs 75.20 INR to buy 1 USD. The USD has increased in value (INR decrease) because it now costs more INR to buy 1 USD.
In the forex market currencies trade in lots, it is call as micro, mini, and standard lots. A micro lot size is 1,000 rate of a given currency, a mini lot size is 10,000. And the standard lot size is 100,000. This is various from when you go to a bank and you want a $450 exchange for your trip.
When trading in the forex market, trades take place in set blocks of the currencies, but you can trade as many blocks as you like in the market. For example, you can trade in seven micro-lots (7,000) or three mini lots sizes (30,000) or 75 standard lots sizes (7,500,000), for example.
The forex market is unique for a few reasons mainly because of its size. Trading volume in the Foreign exchange market is generally a very large market. As an example trading in foreign exchange markets ordinary $6.6 trillion dollars per day in April 2019. According to the Bank for International Settlements which is purchase by 62 central banks and is used to working in budgetary and financial responsibility. The largest trading centers are London, New York, Singapore, Hong Kong, and Tokyo center.
Forex account types:-
There are three types of forex accounts. Each account has requirements
- Standard Accounting
- Mini account
- Managed account
Forex market brokers in India.
- Saxo Bank
- Interactive Brokers
- eToro Brokers
- Ava Traders
- IG Broker
- City Index