Did you think that only cryptocurrency trading is available 24*7 in India? Currency trading is also available for most of the time in a week. You can access the forex market for currency market trading and earn significant returns.
However, currency market trading might not be as easy as it seems. The first step is to understand the basics of the forex market, which includes the trade timings. You must know the right time to invest in different currencies like INR, EUR, GBP, and USD. You must know the right time to trade directly in currencies or currency-related financial instruments.
Read on to understand the timings for currency trading in India.
Understanding Where to Trade Currencies
Most people think currency trading is available on all the stock exchanges in India. However, currency trading is limited to stock exchanges like NSE and BSE. You will mostly find currency-related instruments on public stock exchanges in India. You might discover instruments like futures and options on stock exchanges, which are backed by currencies. However, there is no guarantee that these instruments will always be available on stock exchanges. For the same rationale, investors depend on the forex market for currency trading in India. Forex (Foreign Exchange or FX) market is a decentralised and global market for purchasing and selling currencies.
Currencies are always traded in pairs in the FX market around the world. For example, you can trade the pair of EUR/USD in the FX market and earn returns. You will try to make profits on the exchange rate between EUR and USD currencies in this case. In the above example, EUR will be referred to as the base currency, and USD will be called the quote currency. Exchange rates in the forex market represent the values of base currencies in terms of quote currencies. The FX market is divided into three zones open 24 hours, five days a week. When the trading activities in three zones or sessions overlap, liquidity is the highest.
Understanding the Currency Trading Timings in the FX Market
As discussed, the forex market is divided into three sessions that operate 24*7, five days a week. The Asian session of the FX market is available between 05:30 AM and 02:30 PM (IST). Similarly, the European session timings are between 11:30 AM to 08:30 PM (IST). The timings of the North American session are between 07:30 PM and 04:30 AM (IST). These are general timings in IST for different sessions of the FX market. The timings might shift in different countries to compensate for the time zone differences. You can choose currency pairs that include INR or not, depending on your investment strategy.
When you trade INR currency in the FX market, you must follow the Indian currency timings. Indian currency is usually the quoted currency in the FX market. INR is usually paired with GBP, EUR, USD, and JPY in the FX market. The Indian FX market is open between 09:00 AM and 05:00 PM for traders. It is crucial to note that this timing is applicable for INR pairs in the FX market. For cross-currency market trading in the FX market, the timings might change. The cross-currency trading time in India is between 09:00 AM and 07:30 PM (IST). During these hours, you can find futures contracts with foreign currency pairs.
Some of you might prefer currency-related instruments available on public stock exchanges. For such instruments, you must know the timings of different stock exchanges in India. For currency futures contracts and options in BSE (Bombay Stock Exchange) and NSE (National Stock Exchange), the timing is between 09:00 AM and 05:00 PM (IST).
In a Nutshell
Understanding the currency trading time in India before making investment decisions is essential. You will also need a trading account to start investing in the Indian or global forex market. A reliable brokerage firm can help you open a trading account and gain access to an innovative trading platform. You can start investing in the FX market with all the right information.