Hello, future forex trader. You are here to understand how it all works in the forex market and how to start forex trading in India. There might be many questions in your head right now, but we're sure that there will be much fewer of them when you read this article from A to Z. Forex trading is all about earning money anytime and anywhere. The way you start this journey defines your future as a trader.
Things to Consider
- Forex is a global over-the-counter marketplace for currency trading.
- This market operates 24/5 in different parts of the world, starting from 5 p.m. EST on Sunday till 4 p.m. EST on Friday.
- Forex market is considered the most liquid and largest marketplace in the world.
- There are four major forex exchanges that are located in New York, Sydney, Tokyo, and London.
- Banks, corporations, investment managers and hedge funds, individual traders, and brokers are the main forex market participants.
- When a trader places an order for buying a currency pair, he buys the first listed currency (base currency) and sells the second one (quoted currency).
- The EUR/USD currency pair takes first place in being liquid and is followed by USD/JPY.
Forex trading is all about earning money anytime and anywhere. The way you start this journey defines your future as a trader.
Key Benefits of Forex Trading in India
Forex trading is already a new reality for Indians. Here are the reasons you should consider when joining the team of traders:
Liquidity. Forex equals liquidity. It means that you can easily invest and withdraw huge sums of money without any problems. Cash is the most liquid asset.
Accessibility. Compared to other markets, this one is easy to start with. Beginners can start with a demo account and learn to analyze a real market situation without any deposit. Plus, there are a lot of materials available for boosting your knowledge and skills. There are many brokers that have a support team ready to resolve traders' issues 24/7.
Low transaction costs. The cost of a transaction is measured in spreads, which, in their turn, are measured in points. A point goes the fifth one after the decimal point (for example, if the bid price is 1.42224 and the ask price is 1.42226, the transaction spread results in 2 points). So, a broker will take those 2 points as a payment for their services.
Leverage. Traders can conduct trading operations with significant amounts of leverage. That simply means that brokers are ready to support traders with money if there is such a request. Let's say a trader's leverage is 1:100, so he/she can control a trade of $100,000, having only $1,000. Pretty cool, right?
How to Find a Forex Broker in India?
This is a very important stage since your trading experience strongly depends on the broker's level of professionalism. You should do your homework and prioritize quality over quantity. Yes, it takes time, but a reliable broker is what can support you in case of any troubles. We strongly recommend taking the following steps:
- Read reviews. Such independent platforms as Trustpilot will give you the answers to your questions since there are thousands of brokers sharing their thoughts about
- Study a broker's trading conditions. To avoid different surprises, an in-depth analysis of the trading conditions offered by a broker is a must. Each broker that links you with the forex market has pros and cons you need to be aware of to make a decision. If there are still some questions left, you can contact the broker directly.
- Customer service. It's crucial to know that there is a reliable support team that is ready to resolve any issues anytime and anywhere. Pay attention to the level of their competence because they might be helpful during the process of registration and first steps, but have a horrible support team for those traders who have everyday issues to resolve.
How Much Money do You Need to Start Trading?
Everything depends on the broker you cooperate with. JustMarkets offers you a great opportunity to start trading by depositing just $1. Yes, that's not enough for great returns, but that's how everyone starts. A step-by-step approach is a foundation of success that can't be ignored. You don't know enough about trading to risk your deposit, so it's a good opportunity to practice and learn from your mistakes.
Expertise always comes with experience, so you'll come to the stage where you will be comfortable increasing the sum of your deposit. An important thing to remember is that you shouldn't risk more than you can afford to lose.
You don't know enough about trading to risk your deposit, so it's a good opportunity to just practice and learn from your mistakes.
How to Start Forex Trading in India?
What should I start with? Is it the right thing to do at this stage? You will be overwhelmed by such questions all the time if you don't follow the recommended steps in becoming a trader:
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Learn about Forex. Start from the basics. You will come to the moment where reading analytics will be an integral part of your trading day, so you need to understand what it is about. So, the first thing here is forex vocabulary which is better to be learned in context. The popularity of forex can't be underestimated; there are a lot of supportive materials to boost your trading knowledge.
Read more: Best Forex Trading Books for Beginners
- Open a trading account. It is possible to see the real market inside out by opening an account at a brokerage. Remember that there are no commissions you need to pay. Brokers make money through spreads (the difference between the buy and sell prices).
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Work on your trading strategy. The market isn't predictable. There are a lot of factors that can significantly influence price movements starting from political news and ending with weather changes. Strategy is something you can always rely on, and it makes you more rational and disciplined. A good trading strategy is strongly based on your personality, preferences, and financial situation.
Read more: Best Forex Trading Strategies for Beginners and their Importance
- Be attentive to numbers. You should always analyze your positions at the end of the day. Make sure you have enough money to continue your trading operations or check what can be done differently and better next time.
- Be on top of things. To trade forex with profit, reading overviews and forecasts is crucial.
How To Open A Trading Account In India?
You can easily open a trading account with JustMarkets by following the link and filling in the registration form. After you download a trading platform (MT4 or MT5), you will need to sign in with your email address, and there it is, you are a trader. Make a deposit and start trading in India.
Final Words
It might seem to be difficult and overwhelming, but if a person knows what he/she wants, the sky is the limit. All you need to do is to ask yourself a question about what you really want as a trader, and you will be getting the answers throughout all stages of learning.
About JustMarkets
JustMarkets is an international broker with clients from 197 countries. Millions of people have already opened trading accounts on JustMarkets to benefit from the best conditions, including low spreads, commission-free withdrawals, and a helpful team of support, working round the clock to ensure that each of our clients has the most convenient trading experience.
Open a demo account on JustMarkets to try your hand at currency trading. It's a risk-free way to learn to trade in the most liquid financial market. A teaching account will help you learn trading basics and develop your own strategy before you invest any money. Learn trading today to take care of your future tomorrow.
by , 2021.05.24