Currency trading was launched in India in 2008 on two major exchanges NSE & MCXSX. In Currency trading liquidity is very high. For currency trading margin money requirement is very less so small investors can also trade in it. Our software will give automatic buy sell signal in currency market. In India four currencies are tradable USDINR, GBPINR, EURINR and JPYINR.
In currency future market only individual investor, banking and financial institutions can trade. FII (Foreign Institutional Investors) And NIR (Non-Resident Indians) not allowed trading. Currency price movements depend on Interest rate, Inflation, International trade and Political conditions.
Imports and Exports are the most important factors of a currency's rate. When imports are more than exports, you have a trade deficit. When exports are more than imports, you have a surplus. A shift in the trade balance between two countries tends to weaken the currency of the country with greater deficit.
Cash, natural resources, gold, country's ability to repay loans, finance imports and investments affects the market's perception of its currency and the currency's rate.
Internal Budget Deficit or Surplus is also one of the major factors which influences the fluctuations of currency rates.
(Internal Budget Deficit or Surplus – A country running current account deficit has on balance, a weaker currency than one that runs a budget surplus. This is tricky, however, in that the direction of the surplus or deficit affects perceptions and currency valuations too.)
Interest Rates – Funds travel globally in electronic format responding to changes in short-term interest rates. If three-month interest rates in Germany are running 1% less than three-month rates in the United States, then all other things being equal, ‘hot money’ flows out of Euro into the Dollar.
Political factors – Taxes, stability and other factors that affect the international trade of a country or the perception of ‘soundness’ of the currency affect its valuation.
Inflation – Inflation in each country and inflationary expectations, affect currency rates.