Of the various investment and trading options available to you, the one option we focus least on is currencies trading or forex trading. For a long time, currency trading was out of bounds for most retail investors. With the introduction of currency futures and later currency options, you can actually and effectively take positions in the future movement of currencies. As Indian markets enter , the markets are more globalised than ever before in history.

Hence, currency fluctuations are not only a risk but also a unique opportunity. In the old scenario, there were dollar forwards but that was only available to a person with an underlying currency exposure; not otherwise. Only exporters and importers could hedge their dollar exposure or Euro exposure through these banks. Typically, in the olden days, an importer would buy forward dollar to protect against rupee depreciation while an exporter would sell forward dollars to protect against rupee appreciation.

However, speculation, trading and arbitrage in currency were out of bounds for most investors and traders in India. But, all that changed with the advent of currency futures trading in on NSE. Currency futures trading on the stock exchanges started in and actually picked up steam after the European crisis in The currencies are tradable in currency pairs; either rupee pairs or cross currency pairs.

One can trade hard currencies like the dollar, Yen, Pound and Euro vis-à-vis the rupee or other foreign currencies. Today, online broking accounts give you access to currency futures and currency options on the NSE, BSE and the Metropolitan Stock Exchange.

Currency trading in India has become simpler with the advent of currency trading as it enables you to hedge your currency risk through the exchange mechanism itself.

Also, being an exchange traded product, these currency futures and currency options are guaranteed by the clearing corporation and hence there is no counter-party risk. This is a big comfort zone for participants. You can use your existing equity trading account for trading in currencies too. No additional KYC or documentation is required for the same. Also, the margins are the lowest in the currency derivatives markets giving you the best leverage on these products. Here is how you can make the best of currency trading or forex trading in the coming year.

Scenario 1: India could hike interest rates, which could lead to greater FII flows into debt. That means INR will get stronger and the Dollar gets weaker.

Scenario 2: You have to pay the fees for your daughter who got admission into Brown University in the US in dollars at the end of 3 months. Your concern is that the dollar could become stronger and entail a higher burden. Investing Made Easy And Rewarding!

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By being a trader of a firm, you might get curious to know more about the 5paisa option trading. If so, then go over these details and get a thorough understanding of option trading and brokerage plus the margin. The firm is registered under SEBI , which controls and monitors it. Apart from this, the 5paisa allows you to trade under various stock exchanges, including BSE , NSE , MCX , and MCX-SX.

Options are the type of derivatives contract in which the buyer or seller gets the right but not obligation to buy or sell an underlying asset at the predetermined price. The traders generally get into the option contract to earn more income and to evade the risk of volatility. It is required to activate the derivatives segment to trade-in options. The 5paisa option trading procedure to activate the derivatives segment is also included in this piece of information.

If you want to trade in the option and futures, then the broker provides you with the app for option trading. Using the app first you need to activate the segment. But how to activate option trading in 5paisa? You can activate the options trading through any platform.

The procedure will remain the same. For instance, to understand this, refer to the following steps in accordance with the web portal of 5paisa, i. The segment activation process is not so complicated and can be completed in 5 minutes.

After activating the options segment, the trading can be quickly done and possible with 5paisa. You can analyze the stocks or shares of the companies with the various chart forms and reports and hence can take the decisions based on it. Now, if you want to trade in options and want to know how to do option trading in 5paisa, refer to the following steps to execute the order with options. Till yet we have discussed the process of activation and the process of how to execute 5paisa option trading.

The brokerage charges are the charges that are to be paid both of the time, i. Some brokers provide the exceptions in which they charge the fee only for one time, either for purchasing the shares or for selling the share.

To know more about the 5paisa option trading brokerage charges , contemplate the segment. The brokerage charges will vary:. Similar goes with the futures trading in 5paisa. The broker offers much relaxation and gives you the seamless trading platform that eventually helps you to trade in different assets and mark a profitable trade even when the market goes in a downward direction. If you do not have the desired funds to trade, you can opt for the margin 0f the firm to trade more.

Basically, the margin refers to that money that is borrowed from the broker to buy the shares or stocks. It is the difference between the total value of an investment and the loan amount. Under the different brokerage plans, you can avail the margin facility too. Here to trade in options segment you are provided with 4 times margin to trade in Equity options. While for the currency option one can reap the leverage of 3x.

For commodity options, the broker does not offer any kind of margin facility to its traders. To gain a seamless trading experience, do follow the guidelines provided to activate and execute the trade using the web terminal and app respectively. Also, you can compare 5paisa charges with other discount brokers to prevent yourself from paying heavy fees. Your email address will not be published. Now Trending: Apply for IPO Today Open Kotak Securities Ac Open Angel One Demat Acc How to Put Stop Loss in More on Derivatives Select What is Derivatives Trading?

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If you do not have the desired funds to trade, you can opt for the margin 0f the firm to trade more. Why currency futures and currency options could be big in You can use your existing equity trading account for trading in currencies too. DP Charges in 5Paisa. You can hedge your risk by buying the dollar pair and locking in the current price in the market. Have Promo code?

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