Everybody knows about stocks and equity trading. But, there is a high-potential market that most people are not aware of. This avenue is called currency trading. Allowing trades to happen with foreign currencies, gives you a chance to profit if you are able to spot the right opportunity and use them for your benefit. Let us understand the basic concepts of currency market trading so that you can take advantage of currency trading in your quest for wealth creation.
The International currency market involves participants from around the world. They buy and sell different currencies. Currency trading participants comprise banks, corporations, central banks (like RBI in India), investment management firms, hedge funds, retail forex brokers, and investors like you. Forex trading is a legitimate way to make a profit.
Currency futures in India are cash settled. This means such currency trading in India is not physically settled i.e. there is no actual delivery of the currency on expiry. When you ask what currency trading meaning is, you are most probably referring to currency futures trading.
Currency futures are traded on platforms offered by exchanges like the NSE, Bombay Stock Exchange (BSE), MCX-SX. Currency trading usually happens from 9.00 am to 5.00 pm. You need to open a forex trading account with a broker to do trading in the live currency market.