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No.4, 3rd Floor, Swathi Complex No. 34, Venkat Narayana Road, Nandhanam, Chennai-600018 Tamil Nadu – India

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CURRENCY TRADING

In currency trading, delivery refers to the actual exchange of the currency pairs at the agreed-upon exchange rate.

DELIVERY

In currency trading, delivery refers to the actual exchange of the currency pairs at the agreed-upon exchange rate.

  • Physical Delivery : Involves the actual exchange of currencies between parties, typically used for larger or more traditional transactions.
  • Cash Settlement : More commonly, currency contracts are settled in cash, where the difference between the contract rate and the current market rate is exchanged rather than the actual currencies.
  • Cash Settlement : More commonly, currency contracts are settled in cash, where the difference between the contract rate and the current market rate is exchanged rather than the actual currencies.

INTRADAY

Intraday trading in the forex market involves buying and selling currency pairs within the same trading day.

  • Objective: To profit from short-term fluctuations in currency prices.
  • Leverage: Traders can use leverage to control larger positions with a smaller amount of capital, which increases potential returns and risks.
  • Technical Analysis: Intraday traders often use technical indicators and charts to make trading decisions.
  • No Overnight Risk: Positions are closed by the end of the trading day, avoiding overnight exposure to market movements.

OPTIONS

Currency options give traders the right, but not the obligation, to buy or sell a currency pair at a specific price before the option expires.

  • Call Options: Give the right to buy the currency pair.
  • Put Options: Give the right to sell the currency pair.
  • Hedging: Options can be used to hedge against adverse currency movements.
  • Speculation: Traders use options to speculate on future currency movements with limited risk.