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Is cross currency trading allowed in India?

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Is cross currency trading allowed in India?

Is cross currency trading allowed in India? Yes, the government has allowed legal trading in 3 cross currency pairs i.e. (EUR/USD); (GBP/USD) and (USD/JPY).

Is forex market regulated by RBI?

The Reserve Bank regulates money markets, Government Securities (G-Sec) market, foreign exchange (Forex) market and the markets for derivatives on interest rate, currency and credit derivatives. These markets have evolved in last 10-15 years in terms of participation, liquidity and venues of trading etc.

Which is best forex trading platform in India?

Best Forex Brokers India

  • IG – Best overall broker 2021, most trusted.
  • Saxo Bank – Best for research, trusted global brand.
  • Interactive Brokers – Great for professionals and institutions.
  • FOREX.com – Great all-round offering.
  • AvaTrade – Multiple trading platform options.
  • Admiral Markets – 4.0 Stars.
  • Capital.com – 4.5 Stars.

Does Zerodha allow forex trading?

Yes, Zerodha offers trading in forex (currency). You can trade in currency derivatives at BSE and NSE exchanges using the Zerodha trading account. The customer has to enable the Currency trading segment before start trading in the currency.

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How does RBI intervene in forex market?

In the past, the RBI has tightened monetary policy and used capital controls in order to prevent the rupee from falling, instead of selling off its billions. The central bank does not want the rupee to appreciate as that makes exports uncompetitive. Hence it intervenes in the forex market to buy dollars.

Who has been Authorised by RBI to deal foreign exchange transactions?

Ans. An Authorised Dealer (AD) is any person specifically authorized by the Reserve Bank under Section 10(1) of FEMA, 1999, to deal in foreign exchange or foreign securities (the list of ADs is available on www.rbi.org.in) and normally includes banks.

How can I legally trade forex in India?

However, forex trading is held legal when one does it through specified foreign exchange trading platforms and the base currency is INR (Indian Rupees). Simply put, the Indian Government has limited trading for Indian residents to only trade currency pairs which are bench-marked against INR (Indian Rupee).

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Which forex pairs are legal in India?

However, the Reserve Bank of India further, from 10th December 2015 onwards, allowed exchanges to offer cross-currency futures contracts and exchange-traded currency options in three more currency pairs namely, EUR-USD, GBP-USD, and USD-JPY.

Why RBI should stop hoarding forex reserves?

The central bank’s build up of reserves lets businesses believe that the rupee will not weaken sharply. They think that RBI’s stock of reserves will be used against big currency fluctuations. This in turn prevents these firms from hedging the dollar exposures on their balance sheets.