How To Trade In Currency? | My Espresso

How to Trade Currency?

Currency trading is becoming a more and more popular way to invest money. But it can be confusing for beginners to know how to start trading currencies. In this blog post, we will outline the basics of currency trading and provide you with a few tips to get started. So, if you are interested in learning more about this exciting investment opportunity, keep reading!

Published on 02 February 2023

Let’s get started.

What is Currency Trading?

Currency trading, also known as foreign exchange or Forex trading, is the buying and selling of one currency for another. It is done on the foreign exchange market, which is an online marketplace where traders buy and sell currencies 24 hours a day in an effort to profit from changing exchange rates. In currency trading, investors look to capitalize on changes in exchange rates that are usually caused by currency values being impacted by economic, financial, and political events.

Note: The participants of currency trading in India are not just restricted to traders and investors but many central banks, corporate banks, and travelers. Everyone has their own agenda behind trading.

What is the strengthening and weakening of currency?

Knowing when the strengthening/appreciation and weakening/depreciation of currency happens is essential.

  • The base currency will strengthen when it can buy more units of quotation currency.eed a Forex trading account and a bank account linked to it. Trade is made in two types of markets. Spot markets and Futures markets.
  • There are risks involved in currency trading. You should be aware of the fluctuations in economic conditions globally. There are various geopolitical factors affecting currencies. The Reserve Bank of India is the central bank of India and plays a major role in the currency market and safeguards the INR from deflation.
  • You must know about SEBI; the Securities and Exchange Board of India is responsible for regulating the intermediaries within the currency market in India. Anyone looking to trade currencies within India must register with a broker authorized to be controlled by SEBI. A valid license is provided to the brokers, giving them the authority to trade in currencies.
  • After registering with a broker regulated by SEBI and depositing funds in your account, you can start trading in the currency market.
  • If you’re a beginner, remember that you need not invest in a big trade first. Start trading small and then move ahead. Patience is the key.

Currency Trading in India

Currency trading in India is easier than it might seem initially. There are various platforms where currency trading takes place. For example, National Stock Exchange(NSE), Bombay Stock Exchange(BSE), MCX-SX, and United Stock Exchange are a few platforms. The currency trading hour is 9.00 pm to 5.00 pm. Before involving in currency trading, it is imperative that you understand the market well. You should get more hands-on experience rather than just theoretical knowledge. It isn’t as rampant in India, but one needs to keep a few things in mind before investing in currency trade.

  • The Reserve Bank Of India has made it possible to trade currencies provided that the Indian Rupee be used as the base currency in all trading.
  • You may not need to open a Demat account to trade currencies in India. The government is also cautious, but they have realized that trading in the currency will prove promising, to say the least.

Before you start currency trading, you can always open a Demat account and begin with the stock market. You can get the hang of that first and then eventually enter the currency trading business.


Forex trading in India is gaining momentum. The market in India is still emerging and evolving.

Quotation currency will strengthen when base currency can buy lesser units of quotation currency.


Chandresh Khona
Team Espresso

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