World's Biggest Industry in Financial Services The foreign exchange (Currency or FOREX or FX) market refers to the market for currency trading. Transactions in this market typically involve one party purchasing a quantity of one currency in exchange for paying a quantity of another. The FX market is the largest and most liquid financial market in the world, and includes currency trading between large banks, central banks, currency speculators, corporates, governments, and other institutions. The market is best suited for Banks, Companies, Importers, Exporters, Currency hedgers and Retail Traders.
The world’s currency trading (FOREX Trading) market is the biggest and the fastest growing financial market globally. The daily turnover is more than 2.5 - 3 trillion dollars, which far exceeds the NASDAQ financial market’s daily turnover. As such, it has been referred to as the financial market closest for the ideal competition, notwithstanding market manipulation by central banks. Just like how markets are places to trade goods, similar is the case with FOREX financial markets. The FOREX goods are the currencies of various countries which are traded. You buy Euro by paying US dollars, buy Dollar by paying INR or sell your Japanese Yens for Canadian dollars. That's it! Largest globally traded currencies are US $ (86%), Euro (37%), Japanese Yen (16.5%), Pound Sterling (15%), Swiss Franc (6.8%), Australian $ (6.7%), (April 2007 % Daily Share).
| Product | USD-INR | Euro-INR | Pound-INR | Japanese Yen-INR |
|---|---|---|---|---|
| Lot Size | 1000 Dollars | 1000 Euro | 1000 Pound | 100,000 Yen |
| Quotation | Rs./ Dollar | Rs./ Euro | Rs./ Pound | Rs./ 100 yen |
Trading Hours : Monday to Friday (9:00 am - 5:00 pm)
Initial Margin : 4% - 6% (May vary as per exchange guidelines)
Final Settlement Price : RBI reference rate on last trading day @ 12 noon
Settlement Mode : Daily Mark to Market (MTM) on T+1 basis & No delivery - Position cash settled in INR
Tick Size : INR 0.0025
Contract Cycle : 12 monthly contract trading cycle
Payoff is simple 3 in 1 single order screen for buying and selling in BSE/NSE cash and derivatives No counter-party default risk No Import - Export Documents required Currency Trading is allowed without having an underlying. Efficient price discovery due to high liquidity Price Transparency - real time dissemination of prices Access through internet from remote locations - Live, instant, easy and efficient execution