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Forex Trading

The post is related to forex trading. I received several comments and messages on youtube and Instagram asking about binary trading advantages because they come several across related advertisements normally. Everyone wanted to know if such ads were valid. Actually, forex trading is quite a big deal in itself. You must watch this post if you are interested in forex trading and are not able to do it due to broker issues or any other related problems. I have shared my story in this post because I have experienced it already. 

I have tried to highlight the positive and negative aspects in a truthful manner. So, please watch the whole video patiently and I will meet you again in the outer post. Today's topic is forex. What exactly is Forex? Its Foreign exchange market. Actually, forex is an asset class to trade. I shall try and explain to you its functions and relevance among Indians and also the related details. 

Let's start now. We shall first look into this topic. If I choose to trade in Reliance I shall search for the same. Here it appears. We term it as equity trading. If I have to trade in NIFTY, NIFTY futures appear. We call it index trading. If I have to trade gold I shall search for gold m and futures would appear which are called commodities. If I wish to trade currency I shall search for USD INR which means, dollar v/s Indian rupees. When I click it, as you can see the ongoing value of the September future lot is Rs 73.59. This is termed Forex currency trading. 

forex trading india

There are two ways of forex trading in India. You can trade in futures or other options such as USD INR. 74 CE and PE would be available easily. I have already explained to you all about options, CE, and PE in the previous F & O (Future and option) video. Currency trading is done through Future and Options in India. You can trade this way. You can either buy as a lot, 1,2, or 3 as per your choice. Here, as you can see the value of 1 lot is only Rs 2000. S, you can buy 100 lots with Rs 2,00,000. Then, when the points vary, you will earn money. Similarly, you can choose option trade where the value of 1 lot is Rs 2.5. It’s not a big amount. You can easily buy 100 lots like these for just Rs 250. I think the strike price is chosen here. 

This is how you can trade in Forex in India. In India, we can just trade in 4 pairs. In all 4 cases, transactions must be in Rupees. Those 4 pairs are as follows. Euro INR GBP INR and finally Jpy INR. Our government and market makers have limited us to the above four. We can only trade in these four options irrespective of their market performance. Actually, there are 6 pairs. Euro USD, GBP USD are also present. But, you will not find it on Zerodha. Just try searching for it. You won't find anything. But, at the same time you can see in my Angel broking account you will find Euro USD as well over there. Do you notice Euro USD? Its value seems to be 1 point something. 

These just seem to be bait. Open it and examine the volume. Do you see any volume anywhere? No. Forex is of not much credibility in India. Let me bring you back in here onto the screen and share further details about the actual Forex in India.

The Forex market opens at 9 a.m. and closes at 5 p.m. EURO and USD closes at 7 p.m. I shall now show you the actual Forex market. These basically as you can see here, are the actual big pairs on which the whole world trades. This is very good. The most important pair with a great volume is Euro USD. I shall open it. I will show you what is Forex in reality. Look at this chart. This is 1-hour trade chart. Normally, this can be used in Forex analysis. But, 4 hours is the standard time used in the analysis. 

Forex is very good because proper price action is followed there. This is a 4-hour time frame that I opened randomly. I will show you right now a symmetrical triangle formed over here. All of you might have understood where exactly it is. You can see a symmetrical triangle format over here. Here, it shows a breakdown as shown within a 4-hour timeframe and after a slight variation, shows an uptrend. Forex follows price action diligently. I missed taking advantage of that and tried like anyone else. 

This is why this video was important. Many of my subscribers wanted me to do a post on Forex trading. So, let me do that for all of you. Forex is for example if we are residing in Dubai we would need a broker to open a Forex account just like Zerodha and Angel booking in India. Here, I have opened the details of the nine best brokers Like IG, Saxo bank CMC markets, Dukascopy Ameritrade TD, Ameritrade, City Index 

Forex.com which is good. But, Indians cannot open an account in these. It's fine. But, if suppose you were able to open an account in order to start trading what steps would you follow? Assume that you opened an account in any of these 10 accounts. Then, what do you do to trade? In the case of Zerodha, which app do you use? Which one? Kite app. Here, the situation is slightly different. I mean here to there are several apps. But, the most famous one is Metatrader. MT4. 

Here it is. Metatrader 4. I shall tell you about this app now. Let's come to the trade section. Can you use the Kite app in Angel broking? No, you cannot use the Kite app in Angel broking. In Zerodha, can you use the Angel app? No. In this case, irrespective of the brokers... For example, you start a new account in this way. 

There are 2 types of accounts. One is a demo account for checking purposes that is just paper trading. You can log in to your existing account and look at the company accounts that you have chosen and search for the required stock. Id and password would be provided by the company. In this way, you can log in to the MT 4 app. Now, you can trade through the app. First, you must have funds. I've my account here. It’s real money that is stuck there. 

Let that be. Since it’s real money, I shall explain to you what exactly I did and what I understood in the process. I have 2700 dollars in it. That is stuck there. I shall tell you about that later. So, you have the required money in your account. You now come over here. You would obviously do the analysis of Euro USD on the charts of your laptop. You would use your theory there. You are now willing to buy. You can click on USD trade.

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Two options 'Sell by market' and 'Buy by market' appear. Here, it’s a slightly different concept. Normally, If we have to use Index or equity trade, what do we use? We choose the quantity. For example 500 or 1000. First, we set the stop loss and take profit margin. Then, put the quantity. Here, quantity is valued by lot size. Can you see here? 0.01, 1, 10 0.001 etc. 

This is called the lot size. Here, you have Pips. I shall explain to you about Pips later when I do a detailed video about Forex. As and when you click on the required lot size you can choose either the option of Buy or sell. This is how it works. So Pips and Lot size is something new. Very important to understand. Very different from our market. But, not very tough. Very easy concept. I shall explain them in detail if I make a video on Forex. I showed you an app. You selected a broker in my case I have chosen IC Markets as the broker. I shall show it. Here I log in to Ic Markets that is a Raw trading company based in Australia. 

I have started from there. I have till now shown you basically how it functions. I showed you what real Forex is. You can not just trade with Euro USD, but also with USD Cad GBP USD, USD frank New Zealand USD, Bitcoin USD Gold USD, and Euro JPY. I have invested in BJI NFD just like that to hack the market. Euro USD is also good. Now, let's talk about the Indian market. In India, we can trade only that pair that has Rupees. So, USD INR will appear here as well. This is termed an exotic pair because trading is minimal in it. Here too, you will get its chart. 

forex trading online

But here the market is open 24 hours. It opens on Monday and closes on Friday night. There are no gaps. It follows price action. If we check our market it closes at 5 pm. That's a drawback. This is what I dislike about trading in the Indian forex market. How can it be a forex market in the first place? If we chose to trade in Euro USD, we would not get the same volume as here. There's a lot of variation that happens in both the markets. Indian forex trading depends on the Indian market. 

This is the difference between the actual forex market and that of ours. There's an important matter that I want to share. What do we do? I have told you already that Forex in India is of no relevance. Here, it opens at 9 and closes at 5 while the real market is open. You'll notice at times that trade moves as per your predictions. If any stocks are kept on hold and anything went wrong, you could handle it in real forex. Swing trading is best in the real Forex. I do only Intraday trading in the Indian market because I cannot trust otherwise. Earlier, before the Coronavirus pandemic, things were good. 

Then, If you received a buy signal to do swing trading it would work for 4 days. But, now you accept a buy signal and if some negative news comes up the whole market would stoop down. How big fall would be? All of you are well aware of the recent fall. Then, how to do swing trading? That is the issue. Look here. Such a huge fall in Nifty. This is a 4-hour graph. So, any which ways, I am not able to do swing trading because I have lost faith on market as of now. I managed certain setups in Intraday and I did it and came out.

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When the Coronavirus vaccine comes to market I shall do swing trading. If I regain trust in Bts trades, then I shall discuss many more things with you. As of now, I explain only what I do. I do not google or follow other's youtube videos and give advice. I will never do that. I will tell you what I feel is genuine and important. So, we learned about the Indian Forex which is not of much use because of gaps, lack of volume, etc. I told about the real market too that is open even now.

There is consistent movement there. I will show the 5-minute time frame now. I made this horizontal line many days back. Guys, look at that horizontal line. The line is so very well defined. I made it 3 months back. Now, look at it. Here too, there's a scenario where you could initiate 'buy'. You could initiate 'buy' at the green candle. I shall show the 5 minute time frame. It’s moving right now. This is something very good. I truly wish if some official looks at this and do something for Indians too. You must know what you must do and have done.Not sure but in India basically