forex market

The Forex market in India has radically grown over the last decade and today transacts over 500 billion USD, a significant rise from the 100 billion USD recorded at the end of the last decade. The monthly transactions of the India Forex market is well over ten times the daily takings in India's largest financial market, the share tips.

The growth of the foreign exchange market in the last few years has been nothing less than momentous. In the last 5 years, from 2000-01 to 2005-06, trading volume in the foreign exchange market (including swaps, forwards and forward cancellations) has more 3 than tripled, growing at a compounded annual rate exceeding 25%. Figure 1 shows the growth of foreign exchange trading in India between 1999 and 2006. The inter-bank forex trading volume has continued to account for the dominant share (over 77%) of total trading over this period, though there is an unmistakable downward trend in that proportion. (Part of this dominance, though, result s from double-counting since purchase and sales are added separately, and a single inter-bank transaction leads to a purchase as well as a sales entry.) This is in keeping with global pattern

One big advantage that trading in the forex market provides when compared to trading in the stock markets is the flexibility available for forex traders, considering the fact that most forex market are open 24 hours a day. Another advantage is the huge leverage available to forex traders. Infact, leverage will allow forex traders to buy or sell $ 10,000 USD with only $25 margin deposited in their forex accounts. However, traders need to understand that its is not all roses and petals out there. The risk is summarised well in this wikipedia article on Forex Scams which quotes a New York Times article

The forex market place trading tips will not be textbook not including the effect of current total news and measures. When the news is released, you can expect a prohibitive volume of trade and considerable moves in their positions. This development will prime to charge changes in the currency pour.