Forex Trading for Beginners in India | What is Forex Trading | Best Forex Trading Strategy in India

You might have heard that in forex trading, you get to see up to 400 times the leverage. That means, if you are trading forex with Rs 1,000, then you can buy a trade worth Rs 400 times that amount, i.e. up to Rs 4,00,000. And after this, if the value of the currency pair increases by even 1%, then 1% of Rs 4,00,000 is Rs 4,000. That means, you can earn Rs 4,000 by investing Rs 1,000. Now, you must be very excited to hear that you can buy a trade worth Rs 4,00,000 by investing Rs 1,000. So, yes,

it is possible. But tell me one thing, how will you do forex trading in India? Because all the platforms that you have heard of, which are called the trustable forex trading platforms by big YouTubers and celebrities, on all those platforms, RBI has drawn a circular and said that they are not authorized for forex trading in India. And here you can see, these are all those platforms, and all the big names that you have heard of, you must be thinking that no, no, that will happen. They are also in

this list and they are also not authorized for forex. You can see how big this list is. And in this, you are getting to see a total of 75 such platforms which are not authorized for forex trading. But still, forex trading is going on on all these platforms. And even many channels are promoting you for forex trading. But still, if you want to do forex trading in India, then according to me, the best and legal way is to do forex trading in which you can do forex trading from 9 am to 5 pm through

your Demat account. That is, trading in the derivatives of currency pairs. That is, buying its futures or options, which I will show you live today. But because you are new to forex trading, then you may not even know what forex trading is, what are currency pairs in it. So let's first understand the basics of forex trading a little, so that when I show you all this live, then you can easily understand everything. So let's first understand what forex trading is. So see, the term forex is made up

of two terms. One is foreign and the other is exchange. That is, the exchange in foreign currency is called forex. And when we do trading in this, then it is called forex trading. I know that you have not understood much. So let's understand this with an example. So suppose you go to the USA from India. So which currency runs in India now? In India, our rupee runs. And in the US, the dollar runs. So if you go to the US to buy something from Indian Rupees, will you be able to buy it? You will no

t be able to buy it. So you will need the dollar in the USA. And for this, you will have to give your rupees and exchange it in dollars. So suppose you think that you will need around 4 lakh rupees in the US. So let's assume that the price of one dollar is 80 rupees. So now how much rupees do you have in India? You have 4 lakh rupees in India. And by giving 80 rupees, you will get 1 dollar. So according to this, if you divide your 4 lakh rupees by 80, then it will come out to be 5 thousand dolla

rs. So you will give your 4 lakh rupees and you will get 5 thousand dollars in the USA. So let's assume that you converted your 4 lakh rupees into 5 thousand dollars. And you reached the USA with this. You roamed around in the USA, spent a lot. Let's assume that you have spent a total of 5 thousand dollars. But in the end, you had 1 dollar left. With that 1 dollar, you bought a ticket there. And in that ticket, you got 5 thousand dollars. That means when you are coming back, you have 5 thousand

dollars again. So now when you come to India with this 5 thousand dollars, then dollars won't work in India. Money will work here. So now you have to convert your 5 thousand dollars into rupees. But here you find that the value of rupees has increased from 80 rupees to 82 rupees. So now the 5 thousand dollars you have, these are converted into rupees of 82 rupees. And 5 thousand multiplied with 82 is 4 lakh 10 thousand rupees. So in this case, because the value of the dollar had increased, that'

s why you got a profit of 10 thousand rupees. So in a way, if we look at this entire transaction, then you first gave your Indian rupees and bought dollars. And when the value of rupees increased, then you sold those dollars and bought rupees again. But this time, the rupees you got increased. So this is forex trading, in which we trade in currency pairs. Now I have brought a new term here, currency pairs. So what is this currency pair? So whenever you are doing foreign exchange, then you cannot

do it in just one currency. It is not like you buy the money and sell the money. You will need another currency with it. So for forex trading, you need two currencies. Which in our example, we took Indian rupees and US dollar. Similarly, you can do it in Euro, US dollars. You can do Indian rupees in Japanese yen. And you can do it in different currency pairs. So if you want to trade in the currency pair of US dollar and Indian rupees, then for this, you have to search for USD. And with this, yo

u will search by writing INR. So now the currency pair that has come out in front of us, that is US dollar and Indian rupees. So in this, you can see US dollar written in front. And after this, you can see INR written. So the first currency in this, which in this case is US dollar, is called the base currency. And the second currency after this is called the quote currency. So this basically shows that to buy one US dollar, which is our base currency, how many Indian rupees to buy it, which is o

ur quote currency, you will need. So if I click on this, then we can see that to buy one US dollar, we will need INR 82.8875. Now I have a question for you. And the question is that if the value of this pair increases from 82 to 83 rupees, then what does this mean? So this means that the base currency, which in this case is US dollar, has become strong. And our quote currency, which in this case is Indian rupees, has become weak. Whereas if this value decreases to 82 to 81, then here it means th

at the dollar has become weak and the Indian rupees has become strong. Now let's take another example after this. We just took US dollar and Indian rupees. Now let's take Euro and Indian rupees. So for this, I have searched for EUR and INR. So here we can see that the currency pair of Euro and Indian rupees has also come in front of us. So if we want to buy this, then to buy 1 Euro, we will have to pay INR 89.7350. Now here you must comment and tell which is the base currency in this and which i

s the quote currency in this. Do comment on the things I am explaining to you so that I know that whatever I am telling you, you are understanding. So now you have understood what currency pairs are. So now before doing forex trading, the next thing you have to understand is the lot. Look, when you are doing forex trading, it doesn't mean that you will reach with 1 dollar and say that I want to exchange this. Or you want to exchange it according to 4 dollars. So there are some lots for this. So

if you want to do forex trading, then you have to do it according to the lot. Which if you do directly in the currency pair, then you will get to see in the form of standard, mini, micro, and nano. But when you trade in its futures, then the lot size there is of 1000 quantity. For example, if you want to buy the currency pair of US dollar and INR, then for this, you have to click on buy here. And after this, you can see how many lots you have to buy. So if you want to buy 1 lot, then here you ca

n see that the size of 1 lot is 1000. That is, you will have to buy at least 1000 dollars, whose value is, because the value of 1 dollar is 82 rupees, then here you will need 82,000 rupees. Now to buy just 1 lot, you will have to pay 82,000 rupees. So this is too much. But you don't need to worry. Because when you trade directly in currency pairs, then there you get to see a leverage of up to 400 times. But if you are trading in its futures, then you get to see a leverage of up to 50 times. Beca

use of which, the 1 lot in which you have to buy 1000 dollars, that you don't get for 82,000 rupees, but you get to see 50 times cheaper in 1657 rupees. So see, if I have to buy 10 lots of this, then in 10 lots, it means that 10,000 dollars, whose value will be 8.29 lakh rupees. That is, if I have to buy 10,000 dollars, then I should have given 8.29 lakh rupees. But that 10,000 dollars, whose value is 8.29 lakh rupees, I can only buy them for 16,000 rupees. Because here we get to see a margin of

up to 50 times. So this means that you don't need a lot of money to do forex trading. You can do forex trading with a small amount. But tell me one thing, have you ever seen that the value of 1 dollar increases in just one day and goes from 82 to 90 or 100? Or have you ever seen that in just one day, the value of 1 dollar increases from 82 rupees to 83 rupees? So this can very rarely happen. So the price of the dollar increases, you will only see it increasing in some points. And this is the re

ason that the value of the dollar here, you are getting to see up to 4 decimals. Let's understand this with an example. Let's say that the price of US Dollar and Indian Rupees is 82.8875 rupees. Now if this price increases to 82.8880 rupees, then in this case we will say that the percentage in points is 5. This means that the change in the fourth decimal of the price is called PIP. So just like you get to see a change in the price in the stock market, you get to see more changes in the options.

Similarly, in the forex market, because the price is not 82.83, but the change in the fourth decimal is called PIP. And with this change, we earn profit. If you are liking the video, then do like the video. And yes, if you want to learn about the share market in detail, then do subscribe to our channel. Because if you don't subscribe, then you may never see our video again. So now let me show you a live trade. In the meantime, I will explain a lot of things to you. So watch very carefully. So se

e, if you want to do forex trading, then you have to open your Demat account. And in the Demat account, you have to take care of one thing, that your forex segment should be activated. So for this, you have to go to your account. By the way, if you want to open the best Demat account for trading, then I have given some good Demat account links in the description, which I also use. So do check the description. If you want to check whether your forex segment is activated or not, and if you want to

activate that segment, then for this, you have to go to your profile. And after going to the profile, you will see an option of derivative trading at the end. You have to click on it. Now as soon as you click on it, you can see here that our currency segment is activated. This means we can trade in forex. In addition to this, mutual funds are also activated. Futures and options are also activated. If you want to activate futures and options, or if you want to activate the currency segment, then

for this, you have to give your 6-month bank statement. And after giving that, you can trade in futures or options. So because our segment is activated, this means we can trade in forex. So now if you want to trade in forex, then whichever currency pair you want to trade in, you simply have to search that currency pair here. Like if you want to trade in USD and INR, then you can see here that the currency pair of USD and INR has come out. Now you have to understand a few things here. First of a

ll, you can see here that this is USD and INR. But next to it, you can see an NSE CD. So this means NSE Currency Derivative Segment. I have told you that we are not trading directly in forex here. We are trading in its derivatives. This is why we are able to trade through our Demat account. So if you trade in stock, then you do it through NSE BSE. Similarly, here you can trade through NSE CDs. The second thing you can see here is a date. In this case, it is written as 23rd February. Here it is w

ritten as 27th February. Here it is written as 1st March. Here it is written as 7th March. So what are these dates? So if you were trading directly in forex, then you would not be able to see any such date there. But because we are trading in its derivatives here, then for every derivative, whether you trade in futures or options, it has an expiry. So this date you are seeing here is the expiry of this futures contract. That is, this contract will expire on this date. So this contract will expir

e on 23rd February. This will expire on 27th February. This will expire on 1st March. This will expire on 7th March. This will expire on 15th March. So this means that if you buy this contract, then you can keep it till 27th February. You can keep it till 1st March. You can keep it till 7th March. And this contract of 23rd February, because today when I am recording this video, today is 23rd February. So we will have to sell it today itself if we trade in it. And there is a small difference here

. Like if we look at its price, US dollar of 23rd February, then its price is 82.8875. But if we look at the price after this, like USD INR of 27th February, then its price is 82.8975. If we look at the price after this, then its price is 82.9125. If we look at the price after this, of 7th March, then its price is 82.9300. So now you will say that US dollar and Indian Rupees are the same. Then why is there such a difference in their price? So see, here I will clear it to you that this is actuall

y not the price of US dollar and Indian Rupees. This is the price of this contract. If you want to know the actual price, if you want to know the actual price of US dollar and Indian Rupees, then for this, you will have to look at its chart, which you will see in the trading view website. And you can see that we have opened its futures here too. If I want to see the price of US dollar and INR, then I will simply have to search for US dollar and INR. And here we can see the price of US dollar and

INR, which is now running at 82.8875. And here you can also see a change in its price. You can see that its price is also changing very fast. You can see the increasing price. So keep it so clear that you are not trading directly in this currency through your Demat account in Forex, but you are trading in their contract. So when you are trading in their contract, then the contract that is going to expire today, you have less time in that. So that's why its price will be less. The more time you

have, the more the price will increase. So if you want to buy any currency pair, then instead of analyzing its chart here, I will tell you to go to the trading view. Because here you will see the chart of that currency pair. Whereas you are seeing the chart of its futures in your Demat account. So it will be better for you to see this. So if you feel after doing the analysis that the price of this currency pair can increase, in most of the cases, we are showing you US Dollar and Indian Rupees. B

ut let me tell you that there are many other currency pairs. Like Euro and Indian Rupees, Great Britain Pound Indian Rupees, Euro-US Dollar, GBP-US Dollar, and you can also see currency pairs like US Dollar and Japanese Yen. But in most of the cases, I am showing you US Dollar and Indian Rupees because this is the currency pair that trades the most in which you get to see the most volume. And apart from this, let me tell you one more thing that I am showing you the futures chart here. But you ca

n also see the option chart of this. If we go down, you can see the call and put here. So you can buy this in the form of an option. But because there is not much volume here, it is better that you buy its futures. So if you want to buy this and you feel that its price is going to increase, then you have to click on it. And after this, we are getting the buy option here. Now, as I told you, we get to see 1000 quantity in one lot. So if I buy one lot of this, then if we look here, then you can se

e that its value is Rs. That is, the value of this contract is around Rs. 82,000, which I am getting for Rs. And this is because here we get to see a margin up to 50 times. I am buying this just to explain you an example. Here we may have a profit or loss, but you will see this just to understand. So here I am buying 9 lots. And you can see that the value of these 9 lots, if I show you, then it is Rs. 7.46 lakh. But how much am I getting this? I am getting this for only Rs. 14,946. And this is b

ecause you know that we get to see a margin up to 50 times in this. So now if you want to buy this, then if you want to buy the price here, then you have to click on your market. And if you think that its price can go a little lower, like if you think that I will buy at Rs. 82.9025, then you can also put a limit price on it. But I am making this video just to explain you, that's why I am buying at the market price. And along with this, you also get the option to put a stop loss here. So you can

also put a stop loss together. So if you want to buy, then you simply have to click on buy. And after that, as soon as you click on confirm buy, then you can see that our order has been executed here. And I had bought it at Rs. 82.9050. And now its price is Rs. 82.9025. Now its price has increased by about Rs. 25. And we have come to no loss, no profit. If its price increases a little more, then we can see more profit. Here you don't get to see as much high volatility of option trading. So don't

think that you will see a big profit suddenly. You will see a big loss suddenly. Here you will see a little profit or loss in time. For example, here you can see a profit of Rs. 22.50. I had bought it at Rs. 82.9050. The price has increased to Rs. 82.9075. That's why we can see a little profit here. Now let me clear a point here. The Forex market runs for 24 hours and 5 days. But because we are trading in its derivative, and that's why we are trading in Forex from our Demat account, then its ti

ming is from 9 am to 5 pm. And if you buy it in intraday, then you have to exit it at 4.45 pm. But because I have bought it in carry forward, then I can keep it till its expiry on 27th February. Now our profit has increased to Rs. 45. Now the profit has increased a little more and it has reached Rs. Now you can see that the profit has increased to about Rs. 90. So because I have made this video just to explain to you, that's why I am exiting this trade here. So here I have clicked on exit. And w

e can see that the profit has increased to Rs. 90. Apart from this, if you want to buy directly, If you want to trade in the forex market, then you can see the names of the platforms which are authorized by the RBI to trade forex in India. You can see the names of the platforms here. These are clearcorp.co.in, 360t.com, you can see a website here and you can also see Bloomberg. Apart from these, the forex trading platforms operating in India are not authorized by the RBI. So, it is better not to

trade in forex through these platforms. I hope you liked the video. We have given you genuine information for your benefit. People misguide you by giving wrong information for their benefit. So, please like our video and share it with as many people as possible. If you want to trade and you want to see a lot of volatility, you want to see a lot of profit and loss, then there is an option called options trading. We have taught you about it in detail. You can see the complete playlist of it here.

If you want to open a free Demat account, then the link is given in the description. Thank you.