How to get Free Online Training for Stock Trading?

Whenever we start out on a new venture in life, we could always benefit from a helping hand from somebody who has already trodden the path before us, and has learned valuable lessons along the way.  Entering a new realm can seen daunting because everything feels new and complicated to begin with.  On the other hand some people do a minimal amount of research and suddenly believe they are already an expert, then jump in with both feet not realising that they are asking for problems if they do not apply caution and learn the ropes slowly and steadily.  

A HELPING HAND FROM THOSE WHO UNDERSTAND YOUR POSITION

GOODWILL INDIA understand what it feels like to be taking those first steps into a new world, and they go out of their way to help make the path easier for you.  In fact GOODWILL INDIA go the extra mile and provide FREE ONLINE TRAINING for all of their customers.  Every week they publish new videos tackling such commonly asked topics as ‘How to trade on the shares market in India’, ‘How to invest in shares, long term and short term’, ‘How to open a trading account in India’, and ‘How to convert shares to currency’.  These are just a few example topics that you can gain free training in, if you decide to trade with GOODWILL INDIA as your broker.  Goodwill care about their customers and want them to succeed, which is why they offer this training to give you the best possible chances of being successful in your trading.

WHAT FORM DOES THE TRAINING TAKE?

Training takes the form of live webinars which are broadcast over the internet.  GOODWILL’s own team of charismatic and educated trainers will convey to you the important things that you need to know to avoid the pitfalls that new and experienced traders often fall into.  They are not only trainers but they are experienced professionals from the financial sector who have years of service behind them, and are able to speak with authority.  The webinars cover a range of different topics starting from basic frameworks that you really can’t afford not to learn, to advanced techniques for the experienced trader.  Webinars are conducted on a daily basis and are done alternately in English and Tamil.  All GOODWILL customers can join in and take advantage of the absolutely FREE training sessions, then reap the benefits when they put what they have learned into practice.  Every webinar is followed by a question and answer session where viewers can put their own questions to the trainer and get answers to their specific questions.  The webinars are recorded and made available for later viewing in case you miss the live broadcast or wish to watch something again.

OTHER BENEFITS OF TRADING WITH GOODWILL INDIA

As well as the free online training sessions provided to all their customers, there are a whole range of other benefits that await you should you choose to avail brokerage from GOODWILL INDIA.  Some of the key reasons to choose GOODWILL include the fact that they have some of the very lowest brokerage fees that you can possibly find anywhere in India.  They have a state-of-the-art mobile application that allows you to access your accounts, and make trades wherever you happen to be, even when you’re on the move.  You don’t even have to speak to anybody to place your orders when you use the app, but they also have a telephone option for those who wish to place orders by speaking to a broker directly.  You can even visit one of over 200 physical branches scattered across India.  GOODWILL also provide account opening services absolutely free of charge!  This applies to trading accounts and demat accounts.  Why pay for these things when you get them for free with GOODWILL INDIA?

Still unsure? Clear your doubts by speaking to a GOODWILL representative on +91 80122 78000 today. 

COVID-19 and It's Impact on Indian Share Market?

If you take any interest in the stocks and shares market in India, you will surely have heard investors complaining that their investments have taken a sharp dive since the coronavirus (COVID 19) pandemic began to disrupt human life on earth. 

PLUMMETING MARKETS CAN CAUSE HUGE LOSSES FOR CURRENT INVESTORS

Since last week, up to 20^th March 2020 Friday, the Sensex nosedived by 4,187.52 points (12.27%).  Similarly the Nifty dropped 1,209.75 points (12.15%).  Looking at these figures, it is no wonder that investors are crying at the moment.  If they were to sell any of their equity now, they would most likely take a huge loss.  It is entirely the wrong time to be selling.  Those who were ahead of the game, and who seek to limit loss by selling as soon as the markets drop may have already disposed of many of their assets by now.

WORST FALLS SINCE 2008

 “The stock market is a device to transfer money from the impatient to the patient.”  This quote comes from one of the most successful investors of all time, Warren Buffet.  The quote applies to stock market trading in general, but it is particularly applicable in times of uncertainty such as we are witnessing at the moment.  Siddhartha Khemka, the Head of Retail Research at Motilal Oswal Financial Services mentions that the indices saw a slight relief at the weekend, but the overall scale of the plunge is something we have not seen since October 2008, almost 18 years ago.  You may think that during this turmoil is

ONLY A TEMPORARY DISRUPTION

While the markets are in disarray at the moment due to the uncertainty of the situation with COVID-19, it is certain to be a temporary situation.  Looking back into history we can find many examples of when the markets tanked due to disruptions and uncertainty. 

1997: The Asian Financial Crisis

1998: The Russian Financial Crisis

2000: The bursting of the dot-com bubble

2001: The destruction of the World Trade Centre in USA

2004: The fall of the NDA government in India

2008: Global financial crisis involving the collapse of the Lehman Brothers and Merrill Lynch empires

 

In all of the above cases, the markets were unstable for some time but eventually made a recovery.  We can look at past history in order to predict the future.  There will normally be some companies who can not bear the disruption and will fall by the wayside, but for those who can bear it out, they will eventually see a return to normal.

A RARE OPPORTUNITY FOR NEW INVESTMENT

While those who have already invested may be grumbling about the state of things, this provides a rare opportunity for newcomers to invest in Indian stock markets and pick up some bargains while they are available at prices rarely ever seen.  How long will it be before the COVID-19 crisis comes to an end?  This is something that nobody knows at this moment in time.  If anybody claims to know the answer, they must be considered a liar.  We are in a period of unknown, and it is this ‘fear of the unknown’ that sends shivers down the spines of investors.  If you are someone who was previously considering starting to invest in the Indian share market, this is a very opportune time to take that step.  Some of the best shares are available at throwaway prices.  Or perhaps you would like to try commodity trading? It could also be an opportune time to Invest in the commodity market. After all, the demand for commodities will always be there. 

HOW LONG WILL THIS LULL LAST?

If anybody knew the answer to this question, he would be able to make himself a fortune.  In fact nobody knows the answer, because we don’t know how the spread of COVID-19 virus will continue.  We may be over the worst already, or we may be only in the early stages.  What happens next will depend on how different countries manage to contain the virus, how pharmaceutical companies perform in developing vaccines, treatments and testing solutions.  We can only guess as to how much further the markets can fall before they begin to take an upwards turn.  One thing is for sure; those who wait and wait in the hope of getting even greater bargains risk ‘missing the boat’, as history tells us that the markets always recover before too long.

TALK TO THE PROFESSIONALS TO KNOW MORE

As the situation is changing day by day, this article will be out-of-date within a short space of time.  Professional brokering companies in India such as GOODWILL are monitoring the situation 24/7 and keeping themselves abreast of the current happenings regarding COVID-19 coronavirus and the stocks and shares markets in India.  They are ready and willing to speak to concerned investors or potential new investors who are looking to take advantage of the unlikely opportunity that is currently available.  GOODWILL INDIA can be reached on +91 80122 78000 for all your trading questions and doubts.  They provide free  trading accounts and demat accounts, handy mobile application for trading on the move, free training sessions, and various other valuable bonuses which make them among the best commodity trading and broking firms in India. Don’t delay, call today and don’t be among the dawdlers who will miss the boat.

Which is the Best Investment Platform for Beginners?

ARE YOU THINKING ABOUT INVESTING IN STOCKS AND SHARES IN INDIA?

Anybody who is thinking about getting into investment, or stocks and shares trading will be wondering what the best investment platform in India is.  You will no doubt have come across various brokers websites, each claiming to have the ‘Best online investment platform 2020’ or ‘Best trading investment platform’.  These are often simply misleading keywords used to draw traffic to the websites by making unfounded claims to be the ‘best’.   In reality, best for one person is not necessarily best for another.  All the professional and successful investors will actually agree that there is no single ‘best’ platform, and that protection of equity by investing across multiple platforms is a much safer proposition than placing all your eggs in one basket.  However it must be said that some are easier for a newcomer to enter than others.  Each platform has its own pros and cons that should be carefully considered before deciding whether or not it is viable for you.  Let us proceed to take a look at just a few of the possible areas in which you may wish to invest your money.

REAL ESTATE

Buying physical property is a relatively easy way to begin investing, however it usually requires a fairly large amount of capital to begin with.  No trading account would be required.  Real estate has traditionally been a reliable way to get return on investment if the property is purchased in the correct areas and maintained properly over time.  However, it may take many years for a property to appreciate in value to any significant extent.  The investor must be prepared to be very patient.

CRYPTOCURRENCY

Until recently, the banking sector was ordered by the regulator (RBI) to cease and refrain from having any dealings with persons or businesses that were involved in any way with the buying, selling, holding or mining of cryptocurrencies.  This blanket ban was lifted earlier this month resulting in cryptocurrency once again becoming a legal and viable investment option in India.  The government has drafted a proposed bill to forbid it again in the future though, so it is not clear how long this platform will remain viable.  If and when the new bill is passed, those holding cryptocurrencies will probably have a month’s grace period to dispose of it or face the consequences.

COMMODITIES

MCX is the Multi Commodity Exchange of India.  This platform allows investors to buy stocks of various metals (gold, silver, platinum etc), natural resources such as crude oil, gas etc, and crops/foodstuffs such as palm oil, soya beans, wheat etc.  There are various ways to make money trading in these stocks, such as buying when the price is low and then purchasing ‘options’ or ‘futures’ which allow you to sell at a future date for a pre-determined price.  This requires a trading account, but that can be opened with ease by any number of online brokers, often free of charge, so do not let that daunt you.

FOREIGN CURRENCY EXCHANGE (FOREX)

This can be done on a small scale if you have only a little capital to get you started.  It involves purchasing quantities of foreign currency with the aim of exchanging it back to your local currency later when when the rates are more favourable.  Trading is always done in pairs.  When performed from India, the source or ‘base currency’ must always be the Indian rupee, so it is not possible for Indians to engage in the exchange of two foreign currencies with each other, one currency in the pair will always need to be the Indian rupee.  For sake of argument in a fictitious example, an investor may purchase 1 million Turkish lira for 1 lakh Indian Rupees.  After several years, when the Turkish economy has grown immensely and the Indian rupee has been devalued, the investor can now decide to exchange his 1 million lira for 1.5 lakh Indian rupees.  It requires knowledge and careful monitoring of world economies to be able to accurately predict the best times to purchase particular currencies and the best times to exchange them back to rupees.  Skill comes from experience.

MUTUAL FUNDS

A mutual fund is formed when a financial institution collects money from a large number of individual investors or businesses and amalgamates it.  The sum of all the money together is then handed over to a professional money manager who is assigned to invest it in all manner of securities which may include stocks, bonds, real estate et cetera.  The aim is to generate a return on the original investment that can benefit all the investors in the form of monthly dividends that are paid back to them.  How successful the mutual fund will be and how much income they can generate for the investor will depend on several factors including the skill of the money manager, the market conditions at any moment in time, how much capital was invested initially by the investor.  It is possible for the individual investors to own different amounts of shares in the mutual fund, and dividends will be multiplied depending on how many shares an individual owns.  Shares in mutual funds are most easily held in a demat account, which is like a digital locker that negates the need for investors to maintain folders of paper certificates and documents about the stakes they hold.  It provides safety in that digital records can not be stolen or destroyed by accidents.  Demat accounts are extremely easy to set up and many brokers again offer the demat account opening service free of charge.

CONTACT THE PROFESSIONALS FOR PERSONALISED ADVICE

Now that you have read about some of the investment options available to Indians, you should not think that you are an expert already.  There are further possibilities that have not been covered in this article, and no one article can cater specifically for your personal situation.  Before deciding where you might wish to invest, you should seek some professional advice and discuss your investment goals.  You need to consider how much you can invest, both in monetary terms and in terms of time.  Some investment platforms are incredibly time-consuming and require skill, while others provide passive-income with little to no intervention required by the investor himself.  Speak to GOODWILL INDIA about your hopes and desires, and let them educate you so you can make an informed decision of how to start out on the road to achieving them.  Their customer service advisors are waiting to take your call on +9180122 78000.  There is no shame in asking for advice.  After all, everyone performs better in any field with a helping hand to get them started.

Is the Price of Gold Going to Peak?

THE HISTORY OF GOLD IN INDIA

Since time immemorial, India has had a love affair with gold.  It has been mentioned in the Vedas, Epics,  Puranas, and Upanishads.  It has been used as currency since at least 127CE when King Kanishka I issued the gold dinar.

When traders from Britain and Europe discovered India, and wished to take away spices to their own countries, they found themselves lacking in anything to offer in exchange.  Indians were not interested in foreign currencies or foreign items, and so it was gold that became the currency of choice in these early days of trading.  Despite having little in the way of gold mining activities when compared to Africa, India was able to accumulate a huge amount of gold without actually having to mine it.

GOLD AS AN INVESTMENT

Gold has become well known as a reliable commodity to purchase as an investment.  Not only individuals, but large companies, and even governments hold their own reserves of gold.  It can be useful as a hedge against inflation, because cash in the bank will be devalued over time due to constant inflation, while the gold price is expected to keep on rising.  There have been some slight fluctuations in the price of gold which leads people to ask the question ‘is it safe to invest in physical gold?’  People have been speculating for years about the gold price hitting a peak and then finally crashing down.  Nothing in this world is 100% guaranteed, but the majority of sources agree that gold is likely to remain reliable for the foreseeable future.  

WHAT IS DIGITAL GOLD?

Most individuals do not possess their own armoured safe.  Taking care of physical gold can be a constant worry.  Unless you are somebody who wants to actually wear your gold, you may simply wish to have it locked away safely, only to take it out when it is time to sell it.  Digital gold is a great new system for people with this mindset.  What they actually buy is a digital certificate which entitles them the right to buy gold, some time in the future, of a specific quantity and at a specific price that is decided and agreed upon the day the deal is struck.  With digital gold, the investor can be safe in the knowledge that his gold is always available when he wants it, but in the meantime he is not responsible for taking care of it, meaning it can not get lost or stolen.  He also does not have to pay a monthly fee for any bank safe locker as many physical gold owners have to.

WHAT IS THE FUTURE OF GOLD METAL?

As the mining of gold slows down, the gold price in India continues to increase.  Apart from the obvious visible desire for gold jewellery among Indian ladies, there is an actual technology driven need for gold metal.  Gold is a very good conductor of electricity that does not tarnish with exposure to air.  For this reason it is in high demand for use in electronics and for coating electrical connectors to ensure that good electrical continuity is maintained.  If the mining and production of gold goes down as it appears to be doing, the need for gold will still be there.  In contrast to other natural resources such as gas, which when exhausted will be gone forever, gold is unique in that huge amounts of it have been stashed by human beings.  If the point is reached where mining comes to an end, there will still be a large supply of bullion and jewellery reserves that can be melted down and repurposed for critical electronic applications.  This would presumably drive the price up even more.

GOLD IN THE AUTOMOTIVE INDUSTRY

Gold can be used as a component in the manufacture of catalytic convertors.  Catalytic convertors are a component of almost all modern petrol and diesel engine automobiles.  They are placed in the exhaust system where the toxic gasses produced by the combustion of petrol or diesel in the engine are forced to pass through them.  The catalytic convertor has the effect of converting some of the harmful gasses to less harmful ones which is why they are mandated by many governments all over the world.  As technology improves and the production of internal-combustion engines declines, the need to produce so many catalytic convertors will presumably decline too.  Used convertors can be dismantled and stripped of their precious metals, which can then be used for other purposes.

THINKING OF INVESTING IN GOLD?

Gold is only one of many commodities that are traded on the stock markets.  If you are interested in becoming an investor in gold, or a trader on the stock market you may wish to get some expert advice before doing so.  You can get the expert advice you need from GOODWILL INDIA.  Their customer services representatives are friendly and knowledgeable, and they are waiting to take your call on +91 80122 78000.  With GOODWILL INDIA you are sure to find the answers to your questions.

What are BSE and NSE?

What is BSE or Bombay Stock Exchange?

BSE are the initials of the BOMBAY STOCK EXCHANGE.  This is the oldest stock exchange in Asia, having been founded by Premchand Roychand in 1875.  Stocks and shares had been traded in this open outcry market for over a century before it was revolutionised in 1995 when it was converted to an electronic trading system.  Today there are almost 6000 companies listed on the BSE, and it has become one of the largest exchanges in the world.  Out of these companies only about 2000 of them are regularly traded.

Securities that can be traded on the BSE include stocks, stock options, stock futures, index options, index futures, and weekly options.  The Sensex is an index that measures the overall performance of the BSE, and it includes stocks from 12 different sectors across 30 component companies.

What is NSE or National Stock Exchange?

NSE are the initials of the NATIONAL STOCK EXCHANGE of INDIA. This is the other main stock exchange in India.  This one is much younger than its BSE counterpart, and was already an electronic trading system at the time of its inception in 1992.  It differs from the BSE in that it only has around 1600 companies listed in it.  However it should be noted that some companies feature in both exchanges.  Although the BSE clearly has a lot more companies listed, many of them are barely traded if at all.  The NSE is much bigger than the BSE in terms of volume of shares traded and the value of turnover that goes on.  The index that measures overall performance of the NSE is called the Nifty 50 (because it includes stocks from 50 companies in various sectors).

Which One is Better?

In most situations, you would hear people say that NSE is better as it is more active, and has a higher turnover of shares and value.  It is really up to the individual trader to decide which one suits him the best.  As it has been mentioned that many companies are listed in both exchanges, it is possible to buy shares in one, and sell in the other.  The prices do not move in unison.  This means that it may be possible to buy a company share for say Rs.907 and sell it on the other exchange for Rs.909. Sometimes there are opportunities to make profit from this.

Not all brokers are able to offer you trades on both exchanges.  Some will only be able to facilitate trading on one or the other.  Check carefully before deciding which broker to use to ensure they can provide the service you require.

How to invest in BSE and NSE?

Anybody wishing to engage in stock market trading in India, whether it be on the BSE or NSE will need to have a Demat Account.  This is a special type of account used for holding securities in electronic form.  This has many benefits, not least because it removes the need for any paperwork to be issued and looked after by the trader or the broker.  Most of the best online stock trading brokers in India 2020 are able to open Demat accounts on behalf of their customers.  Some even offer to do it without any cost whatsoever.  Demat accounts are used in conjunction with a trading account.  As demat accounts can only hold securities and not cash, any time you sell a security and need a payout of the cash, this will be done through the corresponding trading account.  Some brokers will charge a monthly maintenance fee for keeping the demat account open, while some will not charge at all.  Please make sure to check these details before deciding which broker you want to begin trading with.

If you have any further questions related to NSE, BSE, Demat accounts or stock market trading in India, you can always expect expert advice from GOOD WILL INDIA.  Their advisors are waiting to speak to you on +9180122 78000.  Don’t be shy.  Everybody needs help to get started in every field of life, and it is better to ask and learn rather than find out through making mistakes whenever money is at risk.

What is the Current Situation with Cryptocurrency in India 2020?

CRYPTOCURRENCY IN INDIA 2020

On 4th March 2020, in a landmark ruling by the Supreme Court of India, the circular that was issued by the Reserve Bank of India back in 2018 which effectively banned the trading of cryptocurrency in India, was quashed.

CRYPTOCURRENCY TRADING IN INDIA IS LEGAL!

The financial regulator RBI (Reserve Bank of India) issued a circular on 6th April 2018 which called for all banks to immediately cease business with any businesses or individuals involved in cryptocurrency transactions, specifying a three-month deadline.   The exact wording prohibited "providing any service in relation to virtual currencies including those of transfer or receipt of money in accounts relating to the purchase or sale of virtual currencies".  This effectively shot down hundreds of businesses who were riding high on the cryptocurrency wave, and thousands of individual traders across India.  Since that circular was released almost all of the cryptocurrency trading companies in India have folded.

Many took offence to this, and the Internet And Mobile Association of India (IAMAI) challenged it in the court.  On July 13th 2018 the court refused to set aside the RBI’s ruling until they heard evidence from RBI, the Finance Ministry and the Union Ministry of Information and Technology.  

The RBI subsequently clarified in an affidavit that they "had not banned cryptocurrencies, but only ring-fenced regulated entities from associated risks."  This still had the effect of almost banning cryptocurrency trading in India as any cryptocurrency buying or selling naturally makes use of the Indian rupee as a base currency.

Zebpay, which was the largest cryptocurrency trading company in India (with thousands of customers) shut down in 2018 after 4 successful years, as it was hindered by the RBI’s ruling. 

HOWEVER, cryptocurrency investment in India is now back on the cards, as the Supreme Court finally ruled against the RBI.  The bench made up of three judges; Aniruddha Bose, V Ramasubramanian and RF Nariman, concluded that the RBI circular can now be set aside on the basis of ‘proportionality’.

HOW TO DO CRYPTOCURRENCY TRANSACTIONS IN INDIA?

As of 4th March 2020 it would appear that trading in all forms of cryptocurrency is once again legal in India and can be freely practiced by individuals and businesses.  It should be noted though, that the number of cryptocurrency trading companies in India has dwindled from hundreds to only a handful since the RBI circular of April 2018.  The new climate since the court ruling should see many of the old names rejuvenate themselves and resume operations and a raft of new ones will no doubt appear as time goes on.  You should consider very carefully whether you wish to embroil yourself in the controversy of cryptocurrency trading such as Bitcoin in India.  The RBI cites its reasoning for attempting to keep the financial bodies that they regulate away from cryptocurrency as protecting them from risk.  The IAMAI felt that it was not about risk, but that the RBI sought to ban cryptocurrencies purely on moral grounds, as there had been no research made into their effects on economies.

THE FUTURE OF CRYPTOCURRENCY IN INDIA

While everything seems to be looking rosy for the moment, there is still something looming that could change the game once again in the near future.  The government of India, along with an inter-ministerial committee have been planning a draft bill on the subject of banning cryptocurrencies.  So far it is believed to be in its early stages, but could be passed at any time in the future.  The circular from the RBI has at least bought the government some time in which to draft their bill.  The current draft contains a line that proposes up to ten years in jail for those who “mine, generate, hold, sell, transfer, dispose of, issue or deal in cryptocurrencies directly or indirectly.”  With this in mind, the future may not be rosy, but rather bleak.

DRAFT BANNING OF CRYPTOCURRENCY & REGULATION OF OFFICIAL DIGITAL CURRENCY BILL, 2019

The Draft Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019 is a bill that is currently being worked on by the government of India which seeks to eliminate the mining, holding, selling, trade, issuance, disposal or use of cryptocurrency within India, by making the aforementioned criminal offences.  The current draft of the bill mentions that punishment for engaging in the aforementioned acts could be by fine, imprisonment for up to 10 years or both.  Under the definitions of the draft bill, ‘cryptocurrency’ encompasses “any information, code, or token which has a digital representation of value and has utility in a business activity, or acts as a store of value, or a unit of account.”  The bill does mention that there may be valid exemptions, but the only ones mentioned are using the ‘technology or processes underlying cryptocurrency for experiment, research or teaching.”

Please be clear that this is still a draft bill and changes and amendments may be made up until such time the government decide if and when to pass it as an actual bill.  If it goes ahead unchanged, then according to its stipulations, anybody possessing any cryptocurrency will have a grace period of 90 days from commencement of the Act in which to declare and dispose of it.

What are you views about the cryptocurrency situation in India?  Are the government right for seeking to ban it completely?  Should they be investigate ways to regulate it rather than ban it as some countries have done?  Please share your thoughts in the comments box below.

Investment Advisory: https://gwcindia.in/

How to Trade on the Forex Market?

WHAT IS FOREX TRADING?

The word Forex is a portmanteau of the two words Foreign and Exchange.  Forex Trading is the act of trading one country’s currency for another, in pursuit of profit.  As currencies of the world fluctuate in value due to market conditions and world events, the value of one country’s currency does not have a fixed relationship with other world currencies.  It is therefore possible to purchase currency of one country when it is affordably low in value, in the hope that it will gain value in the future, and result in a net profit when it is exchanged back to the trader’s native currency.

HOW DOES FOREX TRADING WORK?

A purchaser uses a quantity of a specified currency that he owns, (called the base currency) to purchase an amount of a different foreign currency (called the quote currency) for an agreed exchange rate.  The hope is that the quote currency will rise in value and/or the base currency will drop in value.  For example; An investor agrees to spend Rs.10,000 and receives 550 Swedish krona.  After several years, the Indian rupee may have devalued significantly, and the Swedish krona may have gained value.  Now for the 500 Swedish krona that the investor holds, he can purchase Rs.11,000 Indian rupees.  When done on a large scale with significant amounts of money, the net gains can be high.

WHAT ARE THE DISADVANTAGES?

The reserve bank of India has made forex trading in India illegal, except when done through a Securities Exchange Board of India (SEBI) registered forex trading broker in India, and with INR (Indian rupees) as the base currency.  If you are an Indian resident, it is illegal to do it any other way, and you can find yourself in trouble under the Foreign Exchange Management Act (FEMA), 1999 and face a fine or prison if you are caught, tried and convicted.  There is no prohibition for NRIs to carry out forex trading any way they choose.

Forex trading always involves risks.  Net gains are not guaranteed, and should never be assumed.  Markets can take unexpected twists and turns, which can devastate certain currencies.  An example would be when war breaks out.  It is therefore absolutely necessary to keep watch over the currencies you are dealing with and act in good time to limit loss if they appear to be sliding in value.  To highlight the possibility of loss, let us imagine another fictional scenario.  You have traded Rs.90,000 for 5000 Malaysian ringgits, because with a new government about to be formed, the chances are high of the ringgit rising in value.  However, after several weeks of the new government, it gets toppled and the country is left in disarray.  As a consequence, the ringgit falls sharply in value, and the 5000 ringgits you own would now only buy you Rs.81,000.  You will now face the dilemma of whether to exchange the ringgits now before they have a chance to devalue further, causing you even more loss, or you could wait and hope that they recover their value in the future.  These are the choices you need to make when you get involved in forex trading.

HOW TO TRADE ON THE FOREX MARKET?

If you are in Indian citizen who is resident in India, you will first need to appoint a forex trading broker who will be able to carry out your instructions legally.  Finding the best forex trading broker in India 2020 can be tricky as there are so many advertising their services, you may be confused which one to choose.  The best advice is to always try more than one before making your selection.  Which one is best for you will depend on your circumstances and your intentions.  Some brokers may have very good experience trading in certain currencies, but none at all in others.  Make sure they can actually offer you the currencies you are interested in.  Check out their price plans as these will differ between brokers and can sometimes be complicated.  You may get one month maintenance free, but be charged monthly from the second month onwards.  You may get charged a fixed fee per trade, or you may get charged a percentage of the value of each trade.  Which brokers’ price plan is the best for you is something that you will need to decide, and it will depends upon how many trades you expect to be doing each month, and what value they will be at.

HOW TO OPEN A FOREX TRADING ACCOUNT?

This can be done for you by your appointed SEBI registered forex trading broker.  Please take note that there may or may not be charges applicable for opening the account, so make sure you ask about this before deciding which broker to use.  There are also two types of accounts.  One for individuals (personal account) and one for businesses (corporate account).   As previously mentioned, the Indian rupee must be your base currency, and different brokers may have a different range of currencies they are able to offer you.

Investment Advisory: https://gwcindia.in/

How to Do Options Trading in India?

WHAT IS OPTION TRADING?

The clue really is in the name.  Rather than buying and selling commodities, currency, shares etc on the day itself, buying an Option quite literally secures you the Option of buying or selling a commodity, currency, shares at a specific time in the future for a price which is set at the time the option is purchased.  Let us consider an example; On the 4^th March 2020 you may be able to purchase an OPTION that will secure you the right to purchase a share in a company for Rs.145 (the ‘strike price’) until 8^th April 2020 (the expiration date).  The price to purchase the share outright today on 4^th March 2020 may be Rs.146, so why not buy it outright today?  Careful studying of the markets may give you reason to believe that the share value will have increased substantially by 8^th April.  Maybe you predict that the share price will have risen to Rs.510 in that time.  When the time arrives, you will still have your option that you purchased on 4^th March which allows you to buy the share for the agreed price of Rs.145, thereby making a saving for you.  The most useful part of buying options is the fact that they are by their very nature, optional.  Going back to the same example, imagine that after 4^th March, the share prices take a slide and by 8^th April they are only valued at Rs. 141, you would not be forced to purchase the share at Rs.145.  You can choose to, but it is optional.  Realistically you would seriously consider whether or not you wanted to buy shares in this company at all.  You are at liberty to decide not to make use of your option, buy the shares outright at the going rate on 8^th April, or simply decline to buy at all.  Options to buy currency will state how much currency you can buy with how much of another currency, options to buy commodities will state how much quantity of a commodity you can purchase at what price.  They are always time-bound, meaning that they have a date that is set in the future.  When that date arrives the option can be acted upon, or not.  If not then it will simply expire and cannot be brought back.  If you allow an option to expire you will not be refunded the amount you actually purchased the option for, so that would be a loss.  The example we have described here where the buyer of the option buys the right to buy something is called a “call option”.

In just the same way that we have seen in the first example, Options to sell also exist as the exact opposite.  These kind of options where the buyer of the option buys the right to sell something are called “put options”.  Let’s assume you were holding a share in a company that was currently valued at Rs.111, which you believe to be overpriced (as you anticipate it to be dropping in the future).  You could buy an option to sell the share at Rs.111 with an expiration date set into the future.  Once the expiration date arrives, the value of the share could have gone down, say to Rs.105, but you can exercise your right to sell it at the original agreed strike price of Rs.111.  If the value of the share should have unexpected risen though, you could choose not to exercise your right to sell, choose to keep your share, let the option expire, and live with the fact that you wasted money buying the option.  In this way options can be seen as way of limiting loss, as you only ever really stand to lose the cost of purchasing the option itself.

HOW TO DO OPTIONS TRADING IN INDIA?.

Now that you have learned the meaning of options trading, you may well be wondering how to do options trading in India.  It is something that is available to everybody providing you have some funds to invest.  However it would not be wise to jump straight into option trading without having learned some options trading strategies.  This may not be the easiest form of trading for beginners.  Even experienced traders should definitely speak to an expert in the field of options trading before deciding if they wish to try it themselves.  There are any number of options trading brokers in India 2020.  How do they differ, and which one is right for you?  You are encouraged to speak to several and use the information they provide to help you make an informed decision as to whether you wish to engage in options trading and who you would like to use as your broker.  A great starting point would be chat to the friendly and helpful staff at GOOD WILL INDIA who will be only too pleased to receive your call.  For all your options trading related questions, call GOOD WILL INDIA on +91 80122 78000.