Rich Become Richer with FOREX. But Poor Cannot Trade!
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Rich Become Richer with FOREX. But Poor Cannot Trade!

FOREX meas the foreign exchange market, which is a global decentralized market. This market determines the foreign exchange rate between countries. It includes all aspects of buying, selling and exchanging currencies at current or determined prices.

FOREX is the largest financial market in the world, Foreign exchange (Forex) trading is just like trading in shares, you buying foreign currency at bid price and selling it at higher price in future to make profit. Here, price of one currency is always determined with relation to another currency because you always buy one currency using another currency i.e. you trade in ‘Currency Pair’.

The price is always given as USD/INR, GBP/USD, etc. using Standardised Currency Code. So, this paring is called Currency Trade Pair, the first is called as Base Currency and the other is called as Quote Currency. So, in USD/INR – Base is USD and Quote is INR.

I agree that there are less traders in Currency when compared to Commodities, Equity and Derivatives Traders.

The 10 major reasons I feel are here:

  1. Very Limited Currency pairs are allowed ( as of now 4 Pairs)
  2. Available currency pairs are costlier with INR, comparing to GBP, USD or AUD we need much more funds to earn decent profit.
  3. Lot Sizes are huge, need little more only to take basic trades also.0
  4. Popularity is less and Literacy rate of Currency trading is also less.
  5. Not possible to trade over all financial firms, many brokerage firms still not extended.
  6. People do have fear to trade based on Foreign economies of Paired countries. Like they afraid of US and Europe markets, they fear as they cant predict those markets at least the way they predict Indian Nifty.
  7. High leverage used when investing in foreign currency can result in high volatility and greater risk of loss.
  8. Foreign Financial bodies manipulate currency trading on their platforms which is prohibited by RBI. However, many such authorities cheated people and created unhealthy mindset in Indian currency trading willing people.
  9. There are 4 pairs of trading is allowed in india which are USD-INR, EUR-
  10. INR, GBP-INR and JPY-INR, but the drawback is Option trading is allowed only in USD-INR. Only NRIs are allowed with all other pairs.

Under the Foreign Exchange Management Act these currency pairs and rules are being monitored, also RBI takes strict measure on Illegal Forex and CFD trading.

Remember, you can trade in Forex with International bodies around 24 hours a day, however with Indian permitted authorities platforms you can trade only between 9:00pm to 5:00pm

Trading in forex is simple with zerodha, definately it is not late yet, open your All in one Trading account to do trades in Equity, Commodities, Forex and Derivatives. Click here

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2 Comments

  1. Tony Muller
    July 02, 21:52 Reply

    A lot of information has already been posted! In your personal view, why is it that only rich can trade? Looking forward for your response. Thanks a lot!

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