How To Earn Crores From Forex Trading?

How To Earn Crores From Forex Trading?

Many people want to earn crores from Forex Trading. They think that they can do it easily. And yes, at first look, it looks so easy that you will think that anybody can make a fortune from this. Honestly speaking, When I personally first time saw the Forex trading terminal my first thought was, “It is Easy”. But later on I realized that, It’s not easy. And making consistent profits from the forex trading is almost impossible.

Basically 2 things required to earn crores from Forex trading.

01) High Level of Financial IQ

02) Huge Capital

If you don’t have any one of the above things than simply forget the idea of making crores from Forex Trading.

Many Internet Marketers sell their products promising the people that, their product contains some secrets of profitable Forex Trading. But well, this is not true.

The only Secret of Profitable Forex Trading consistently is that, You sell your own product offering secrets of Forex Trading on the Internet to literally thousands of people. This is the one and only way to make money online.

The only problem with Forex trading is that, the returns are not consistent. Forex Trading should be the money making thing for you only if you are financially sound and afford to lose a huge capital without altering your life style.

Otherwise, I would recommend you to Be a Vanilla Investor – I mean Invest in Equity Diversified Portfolio for long term and go to sleep…!!!

Forex Trade ICICI Direct

Forex Trading with ICICI Direct

Currency Derivatives ICICI

Recently, ICICI bank has started the Forex trading for its customers. So now you can trade in currency futures and derivative. There are several reasons to trade in forex. Here are the few reasons why you should trade in forex?

i. Hedging: You can protect your foreign exchange exposure in business and hedge potential losses by taking appropriate positions in the same. For e.g. If you are an importer, and have USD payments to make at a future date, you can hedge your foreign exchange exposure by buying USDINR and fixing your pay out rate today. You would hedge if you were of the view that USDINR was going to depreciate. Similarly it would give hedging opportunities to Exporters to hedge thier future receivables, Borrowers to hedge foreign currency (FCY) loans for interest and principal payments, Resident Indians, who can hedge their offshore investments.

ii. Speculation: You can speculate on the short term movement of the markets by using Currency Futures. For e.g. If you expect oil prices to rise and impact India's import bill, you would buy USDINR in expectation that the INR would depreciate. Alternatively if you believed that strong exports from the IT sector, combined with strong FII flows will translate to INR appreciation you would sell USDINR.

iii. Arbitrage: You can make profits by taking advantage of the exchange rates of the currency in different markets and different exchanges.

iv. Leverage: You can trade in the currency derivatives by just paying a % value called the margin amount instead of the full traded value.

If you are already an ICICIDirect.com demat account holder than you can start trading in the currency derivatives right away.

Currency Futures Trading on ICICIDirect.com

Launching Currency Futures Trading on ICICIDirect.com -

Forex trading means trading in currency futures was the investment option that was only available to the corporations up to now in India. But now, ICICIDirect.com brings currency futures trading for small investors also.

Investors trade in currency futures for Investments, Hedging & Trading purposes. Foreign exchange rates have a strong correlation to interest rates, equity flows and commodities. This translates into multiple opportunities for customers like yourself to hedge or trade in Currency Futures independently or in conjunction with equities.

Let me highlight a few benefits of this product:

Introduction to a New Asset Class : Investment avenues in Forex derived securities which to date has been an asset class available only to corporates. You now have an opportunity to access this through ICICIdirect.com

Hedging Your Equity Portfolio: Statistics show a strong negative correlation between the INR and USD exchange rate and the equity market indices. Thus you may use it as another way of hedging your existing portfolio

Trading for Active Traders: Low margin requirements will help you leverage even more while you trade in Currency Futures . You can trade in Currency Futures contracts with margins as low as Rs. 2000.

Hedging Your Overseas Portfolio: Reserve Bank of India allows Resident Indiansto invest up to USD 200,000 in overseas equity markets. Such investment carries not only capital market exposure but also currency exposure. With the availability of Currency Futures, exposure in currency markets can be completely hedged

Fixing Rupee Cost for foreign travel or educational expenses abroad: Foreigncurrency exposure on account of educational, business or travel expenses can also be hedged thereby bringing more certainty to the overall rupee cost

Hedging your Forex Business Risks: If you run or are engaged with a corporate or SME Enterprise where there is currency exposure, you may want to explore Currency Futures for hedging. At ICICIdirect.com you can hedge your currency exposure in an easy and transparent manner even for smaller transactions

Presently only USD/INR futures contracts have been introduced by NSE and are being made available to you on ICICIdirect.com.

Thus trading in currency futures was never this much easy…!!!

India Plays lender to US government

US government Bonds are considered as the safest Investment on the earth. And thus even during the time of recession also, several countries’ Central Banks have invested literally billions of dollars in acquiring Treasury Securities.

Treasury Securities from US Government have become irresistible to central banks of emerging markets, including India. India has lent close to US $ 20 Billion to the US government over the six months since the collapse of that country’s iconic investment bank Lehman Brothers.

According to the latest data shared by the US treasury Department, India’s outstanding exposure to US Government bonds rose to US $ 38.2 Billion from US $ 18.3 Billion in October 2008.

Major Investor          Investment between        Outstanding as of
                                         Oct 08 – Mar 09                  Mar 09

China, Mainland                83.8                          767.9

Japan                             57.1                          686.7

Russia                             27.6                         138.4

India                                     19.9                               38.2

Ireland                            19.6                          54.7

Oil Exporters (3)               15.3                          192

Norway                           14.7                          26.2

Carib Banking Ctr (4)          10.1                         213.6

Hong Kong                        9.1                          78.9

Taiwan                            8.9                           74.8

[SOURCE: US Treasury Department / Federal Reserve Board ($ Bn)]

The latest tranche if Investment into treasuries has made India the fourth-largest creditor to the US after China.

India has now emerged among the Top 15 lenders to the US. Though, Corporates, banks and other financial institutions can subscribe to US treasury bonds, in the case of India, the central bank (RBI)amounts for a large chunk of the Investment.