What is Currency Trading – Arthsamruddhi.ai

What is Currency Trading – Arthsamruddhi.ai

What is Currency Trading? – A Beginner’s Guide for Indian Traders

Currency trading, also known as foreign exchange (Forex or FX), means buying one

currency while selling another — for example, buying U.S. Dollars (USD) and selling Indian Rupees (INR) when you expect the Dollar to rise in value.

Globally, the forex market is the largest financial marketplace, where trillions of dollars are exchanged daily. In India, however, currency trading happens under strict regulation by RBI (Reserve Bank of India) and SEBI (Securities and Exchange Board of India) to ensure transparency and investor safety.

Unlike the global open forex market, Indian retail traders can trade only INR-based currency pairs on recognized exchanges such as NSE, BSE, and MCX-SX.

What is Currency Trading – Arthsamruddhi.ai Blog

India’s forex policy is guided by FEMA (Foreign Exchange Management Act). RBI allows transactions only in INR-linked pairs so that every trade remains domestic, traceable, and compliant with Indian law.

Trading non-INR pairs such as EUR/USD, GBP/USD, or XAU/USD (Gold vs Dollar) through offshore brokers (Exness, Octa, etc.) is not permitted for Indian residents and may attract legal consequences.

■ Example –

• USD/INR Contract: • Lot Size: 1,000 USD

• Tick Value: ■ 0.0025 = ■ 25 profit/loss per tick

• Margin: ■ 2,000 – ■ 3,000 per lot

• Trading Hours: 9 AM – 5 PM

• If USD/INR moves from ■ 83.50 to ■ 83.75, that’s a ■ 0.25 rise = ■ 0.25 × 1,000 = ■ 250 profit per lot.

What is Currency Trading – Arthsamruddhi.ai Blog

Arthsamruddhi Insight: Currency trading is not a get-rich quick game — it is a discipline of understanding global flows, risk control and self-awareness.

What is Currency Trading – Arthsamruddhi.ai Blog

Steps to Start Legally in India:

1■■ Choose a SEBI-registered broker (Zerodha, Angel One, ICICI Direct, Groww etc.)

2■■ Submit KYC + income proof to activate the Currency Derivatives segment.

3■■ Fund your account through your own bank.

4■■ Start small – trade USD/INR mini contracts first.

5■■ Maintain a Trading Journal for discipline and tax records.

What is Currency Trading – Arthsamruddhi.ai Blog

Key Takeaway

Currency trading is a powerful financial tool when done with education, discipline and

legality. With Arthsamruddhi.ai’s learning framework, you can build global awareness while staying fully compliant with Indian regulations.