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Topic : The Dollar in Forex Trading
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Started by : Deepika Malik, Associate, HDFC Bank   11 22 2008 06:26:08 +0000
Industry : Equity Research/AnalyticsFunctional Area : Derivatives(Markets)
Activity:  33 views;  last activity : 10 06 2010 07:37:03 +0000

Given frequent sharp movements in the US dollar-rupee rate, it looks as though currency futures are not going to be just another trading instrument; they’re likely to be very useful for many people in a variety of situations. Please put across your views to qualify this idea.

 
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1 2 3 4 5
1 Currency is an asset class
2 Forex Trading
3 Good reward for the risk taker
4 Children’s education abroad
5 Market prospects
6 Learn Forex (Currency) Trading

Currency is an asset class

idea posted by Deepika Malik Associate, HDFC Bank
I know everyone will agree that cash is the king. In other cases margins levied are lower than for gold in commodity futures. Currency futures are the most liquid of markets. And the tick size (the minimum price movement in a market) announced is just a quarter of one paisa, which makes entry and exit easier for retail clients.

 

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by Sukumar Maity, Sr. Associate, IDBI Bank  | 11 22 2008 06:27:16 +0000

Currency is an asset class, like equities , commodities or art. It’s favoured worldwide for its ability to re-price other assets. The currency futures market is your ticket to universal asset allocation .




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Forex Trading

idea posted by Pooja Dangi Associate, Irevna
Importers and exporters use currency futures to hedge foreign currency exposure. Some of the business from the OTC (over-the-counter ) market controlled by banks will be transferred to the currency futures markets. This is the best that the IT industry can ask for.
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by Jyoti Rath, Sr. Associate, Barclays  | 11 22 2008 06:28:00 +0000

When it comes to OTC, transparency becomes a big factor. Transparency and liquidity will ensure that companies with exposure of less than US$ 5 million find the currency futures markets much friendlier. So there is lot in for you.

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Good reward for the risk taker

idea posted by arun Finance executive, Infotech

Unlike a stock market, a single entity cant dominate the currency pair value..

U can get nearly 30-50% return in the intra day trading based on your risk taking ability. 

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by arun , Finance executive, Infotech  | 11 30 2009 06:15:51 +0000

It has the major advantage of LIQUIDITY since the currency pairs 

are traded worldwide.

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by arun , Finance executive, Infotech  | 11 30 2009 06:12:57 +0000

Since the market is existing for 24*7 , It has potential

opportunity to get more returns and u can trade at your convenient time.

 

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Children’s education abroad

idea posted by Hitesh Moghe Associate, Barclays

A common situation is paying for a child’s education abroad. Such needs should be securely hedged based on your ability to pay today, rather than by mortgaging your financial future to the vagaries of currency markets. A relationship manager can guide you on this.

 

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Market prospects

idea posted by Pravin Patil Associate, Kotak Mahindra

This is one of the oldest reasons for currency trading—your view of where the market will go. Information is easily available in the media, and careful analysis will let you form opinions on prospects. For example, when equity markets crashed in January, FII sale figures were easily available. It was clear they were selling equity, buying dollars with the proceeds, and repatriating the dollars. This, and rising oil prices, weakened the rupee.

 

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Learn Forex (Currency) Trading

idea posted by Vaibhav Rastogi Director, A2Z Forex

Anyone can do Forex Trading

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No English Knowledge required

No Mathematic knowledge required

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No Share Trading Knowledge required

Start trading immediately

From basics to advance level

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Get Technical Analysis Book worth Rs.3K absolutely FREE

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