Glossary Background

Forex Trading

Forex trading involves buying and selling currency pairs, either through exchange-traded derivatives or over-the-counter (OTC) markets. Currencies are traded in pairs, as one is always exchanged for another. In India, forex derivatives trading occurs on stock exchanges regulated by SEBI and RBI, facilitated by approved brokers. These brokers enable access to forex futures and options markets, allowing traders to speculate or hedge on currency price movements. This structured setup ensures compliance and provides a platform for engaging with global currency fluctuations profitably.