The currency market in India is open from 9.00 AM to 5.00 PM while trading can go on till 7.30 PM as well for cross-currency pairs. That said, liquidity and volatility aren't always the same throughout India's forex market hours.
Is forex trading right for You?
- Foreign Currency Exchange (Forex) Trading For Individual Investors Individual investors who are considering participating in the foreign currency exchange (or “forex”) market need to understand fully the market and its unique characteristics. Forex trading can be very risky and is not appropriate for all investors.
What are the features of forex market in India?
- There are several features of Indian forex market which, even if well known, require to be recalled comprehensively. Participants The foreign exchange market in India comprises of customers, Authorised Dealers (ADs) in foreign exchange and Reserve Bank of India. The ADs are essentially banks authorised by RBI to do foreign exchange business.
Is foreign exchange netting legal in India?
- The Expert Group on Foreign Exchange Markets in India also recommended introduction of foreign exchange clearing and making netting legally enforceable. The Scheme was conceived as multilateral netting arrangement of inter-bank forex transactions in US dollar.
What is the history of Forex in India?
- Evolution Market players in forex became active in the seventies, consequent upon the collapse of Bretton Woods Agreement. However, India was somewhat insulated since stringent exchange controls prevailed and banks were required to undertake only cover operations and maintain a ‘square’ or ‘near square’ position at all times .
Unlike Wall Street, which runs on regular business hours, the forex market runs on the normal business hours of four different parts of the world and their respective time zones, which means trading lasts all day and night.