Research tools for Currency market
1. Understanding various macro-economic factors and tracking various global economic data releases can help in timing the market movements.
2. Tracking INR movement through technical analysis can give a very smart indication of the probable move.
3. A view of the Indian equity market helps in understanding the FII money flow, which is one of the important factors for consideration.
4. Daily actions by the apex body RBI gives a good indication of their intentions of keeping INR at a particular range/level.
5. And most important, tracking the movement of other global currencies, will give insight into the global trend.
A currency market is a very integral part of our life. As a macroeconomic indicator, it gives a fair reflection of the economic state of the affair.
Futures are not a substitute for forward contracts. It can act as a very good complementary trade to manage the large forward deals. It helps in-
- Real-time Risk Management
- Timing Core Business Decisions
- Tracking Profit/loss
- Removing Counterparty Risk
- Price Advantage over forward in case of small tick size
- Price Transparency
So, we hope you enjoyed the learning from this module and are ready to start trading the currency markets. There are also many such modules we have designed so that you can learn the complexities of financial markets extremely well. Check out all the modules under ELM School.
Happy learning !!