Is Forex Trading Legal or Illegal in India? Can I go to Jail for trading Forex in India?
This video explains in detail what is the Confusion regarding Forex Trading in India, what is the Reserve Bank of India’s stance, and why it is so hell bent on Banning Forex Trading when there is so much more to do to the economy.
This video also explains you the Liberalized Remittance Scheme of India, and how it is to be used and how it is not to be used for Leverage trading and Gambling. Do you know that under the LRS, the Liberalized remittance Scheme, any Indian can send 200,000 US dollars outside of India to invest in Equities, real estate and other things, without taking any permission from the RBI… but Liberalized Remittance Scheme is not supposed to be used for Margin Trading and Gambling.
This video explains in detail, how there was Chaos in the post 2007 era of the India Shining, and how many Major International Forex brokers were doing great business in India under the nose of RBI and RBI didn’t do anything to stop them.
Forex Trading was never illegal in India, there was and is restriction in trading few currency pairs, but INR pairs were always legal to trade.
This video also gives you the good news about how now any ‘Indian can Trade Eurousd, GBPUSD and USDJPY pairs without breaking any FEMA or FERA laws and make money trading right here in India with a Sebi regulated broker.
Following is the Economic Times Article :
http://articles.economictimes.indiatimes.com/2015-12-10/news/68930415_1_currency-option-eur-inr-futures
RBI allows three more cross currency pairs to be traded in derivatives market
MUMBAI: Corporates and well-heeled investors will now have more leeway to hedge their offshore currency exposures as the Reserve Bank of India has allowed three more cross currency pairs, to be traded in the exchange traded derivatives market including futures and options.
Currently four currency pairs are traded in futures market viz. rupee-dollar, rupee-pound, rupee-yen, and rupee-euro. Of which rupee-dollar was only allowed in options market in domestic stock exchanges like NSE and BSE.
"It has been decided to permit the recognized stock exchanges to offer cross-currency futures contracts and exchange traded option contracts in the currency pairs of EUR-$(euro-dollar), GBP-$(pound-dollar) and USD-JPY (dollar-yen)," RBI said in a notification.
" Recognised stock exchanges are also permitted to offer exchange traded currency option contracts in EUR-INR, GBP-INR and JPY-INR in addition to the existing USD-INR option contract, with immediate effect."
Companies from information technology and manufacturing space are most likely to benefit from this addition as they have growing business associations in Europe, Japan, and UK, dealers said.
With the new guidelines the currency kitty has expanded including new pairs, which in turn, will help increase participation in domestic stock exchanges.
The central bank announced plans for such inclusion earlier in September monetary policy.
Foreign investors too can take bet on these.
Moreover, talks are going on to extend timing of futures and options trading to align with other global markets like Singapore, Hong Kong, Europe.
Alpari in India
https://www.youtube.com/watch?v=2PF8zAvGbI8
Forex traders can develop strategies based on various technical analysis tools including market trend, volume, range, support and resistance levels, chart patterns and indicators, as well as conduct a Multiple Time Frame Analysis using different time frame charts. Forex traders can develop strategies based on various technical analysis tools including market trend, volume, range, support and resistance levels, chart patterns and indicators, as well as conduct a Multiple Time Frame Analysis using different time-frame charts. Fading strategy is extremely risky since it means trading against the prevailing market trend However, it can be advantageous as well - fade traders can make profit from any price reversal because after a sharp rise or decline the currency it is expected to show some reversals. Trend following forex strategy traders will exploit these changes by buying into markets once they have broken through the previous resistance and will sell those markets when they have fallen below the support levels.
Day traders will generally identify current market trends and prevailing sentiment and trade in the same direction until a support or resistance level is reached. One of the things that many traders will look for, whether they are trading short-term for just a few minutes, or longer term over hours and days, is how the forex market reacts near important support and resistance levels. Strategies such as trading specific currency pairs that are at play during the times of day you can trade, looking at longer timeframes, implementing price action methods and employing technology will contribute to the success of part-time forex traders.
Trend-following strategies encourage traders to buy on the markets once they have broken through resistance and sell markets, and when they have fallen through support levels. While many forex traders prefer intraday trading, because market volatility provides more opportunities for profits in narrower time-frames, forex weekly trading strategies can provide more flexibility and stability. This can make things extremely difficult in a fast moving market like the currency markets, but there are some strategies you can follow to help you have a better chance at success when trading forex, even if you're a part-time trader.
Breakout trading strategies are very popular among day traders, since the market tends to have a strong momentum after an important technical level breaks. Technical Forex market strategies rely on the analysis of price charts and historic price data and are based on the three basic tenets of technical analysis, which state that (1) price discounts all information, (2) markets like to trend, and (3) history repeats itself. If in technical analysis traders mainly deal with different charts and technical tools to reveal the past, present and future state of currency prices, in fundamental analysis the importance is given to the macroeconomic and political factors which can directly influence the foreign exchange market.
The most successful traders are those who devote a lot of time to learning about the markets and developing a strong sense of risk management through proper use of trading strategies.
