Every country has its own currency. There were times when goods were exchanged for goods and there was no currency in circulation. This was referred to as the barter system. Times changed and slowly the need for the currency was realized. We have come a long way from stones, gold, and cotton bales that were used as currency to paper currency. It is prudent to note here that currency issue is the sovereign right of every government and it is for this reason each currency has a different value. Any country’s currency value is an index of its trade surplus and economic strength. Countries have strong currencies that have large trade surpluses.
Currency trading was not a recognized market for a long time. Forex trading in India was limited to the rupee forward market which was a part of an inter-bank market. Today, forex trading has picked up in India among small and mid-sized investors and this resulted after currency futures were introduced on the stock exchanges like BSE and NSE. Today, the global currency trading value has touched the whopping figure of $5 trillion but the currency market in India is still exceedingly small as per international standards.
As far as forex trading in India is concerned, currency pairs are traded. There are two distinct pieces in a currency pair. These are the quotation currency and the base currency. These currency pairs form the foundation of currency trading in India. The base currency is represented as one unit. In India, the foreign exchange trading hours are limited on the currency futures exchange, but the global currency market is open 24-hours.
If you are an investor and wish to get involved in forex trading in India, you will have to work on the BSE and NSE platforms that offer currency options and currency futures. It is interesting to note that the INR/USD pair is one of the most liquid contracts with other contracts fast bridging the gap. As far as the basic structure is concerned, the currency options and currency futures operate on similar lines as the commodity derivatives and equity markets. Traders interested to trade in currencies can indulge in currency futures trading.
Beginners can seek professional trading services and solutions and learn the ropes of forex trading in India. These help retail clients make the most of the opportunities that come with investing and trading. They can meet their long- and short-term goals by gaining access to the best forex trading platform.