diary of a day trader

[chataara]

Dear friends

After equity market is over, traded in currency market.

Shorted Dollar and Pound - total 3 lots. Sold within another 45 minutes

Profit Rs. 350

Thanks

 

[TraderRavi]

Dear friends

After equity market is over, traded in currency market.

Shorted Dollar and Pound - total 3 lots. Sold within another 45 minutes

Profit Rs. 350

Thanks

can you post more detail about this currency trade..........

 

[timepass]

What details do you want ?

 

[TraderRavi]

What details do you want ?

I mean trade details...shorted @..???...covered @...????...lots...3??

TP do you trade in currency too..?

 

[timepass]

These days I am looking at USDINR. Not bad. With zerodha the breakeven comes at 2.7 paisa for one lot, and goes down with the number of lots / trades. So, the stoploss doesn't hurt that much.

Edit : And one lot needs a margin of about 1900rs.

 

[TraderRavi]

These days I am looking at USDINR. Not bad. With zerodha the breakeven comes at 2.7 paisa for one lot, and goes down with the number of lots / trades. So, the stoploss doesn't hurt that much.

Edit : And one lot needs a margin of about 1900rs.

that is 12 ticks in your favour for break even....is it.?.........in rupee terms ..how much charges per lot...??..is it 20 + 20 = 40 brokerage + 10 other = rs 50....but this means 5 paisa move not 2.7 paise....?????

 

[timepass]

Maybe I didn't define it well. One lot buy + sell is between 25-30 Rs. One paisa move is Rs. 10. I guess one paisa can be defined as 4 ticks, but I look at it in terms of paisa . No auto square off. It is much cheaper than 1 lot mini and you can trade 9-5 (longer trading hours). There is almost always some sharp move between 4-5pm.

 

[chataara]

can you post more detail about this currency trade..........

Dear friend

In currency market 1 Lot means 1000 dollars / pounds / japan yen / euro.

Suppose u are buying 1 lot of usdinr, its total value will be 52700. For this required margin is just Rs.1300. This margin amount varies for different currencies.

Minimum bid and offer rates are in the range of 0.0025. If this value increases in the corresponding pair you will get Rs.2.50.

If 1 rupee is increased in a pair you will get Rs. 1000 as profit.

Usually in currency market future contracts are traded. You may go long or short like you do in equity market. U cannot expect bigger movement in this market. Some 50 paise upside or downside you can expect.

Yesterday rupee appreciated around 1 rupee. This is great movement in last 2 years.

Commission (in my case) is 0.03 paise for 100 rupees. That is per lot it will come approximately Rs.30 (both sides put together).

 

[chataara]

that is 12 ticks in your favour for break even....is it.?.........in rupee terms ..how much charges per lot...??..is it 20 + 20 = 40 brokerage + 10 other = rs 50....but this means 5 paisa move not 2.7 paise....?????

Yes.

U are correct. with 5 paisa move you can avoid loss as far as usdinr concerned. If it is related to pound some 7 paisa move is necessary to avoid loss.

Currency market is not much riskier like equity market. In a single lot maximum loss (most of the days) will be Rs.500 only.

 

[IAtma]

Chataara dear,

this information is really valuable, but I need some more Will u explain please :

What currencies can be traded in India ?

How much margian is required for trading 1 lot ?

Is currency trading available 24*7 ?

Can you trade currency with same a/c or u need to open a seprate a/c ?

Thanks in advance.

Dear friend

In currency market 1 Lot means 1000 dollars / pounds / japan yen / euro.

Suppose u are buying 1 lot of usdinr, its total value will be 52700. For this required margin is just Rs.1300. This margin amount varies for different currencies.

Minimum bid and offer rates are in the range of 0.0025. If this value increases in the corresponding pair you will get Rs.2.50.

If 1 rupee is increased in a pair you will get Rs. 1000 as profit.

Usually in currency market future contracts are traded. You may go long or short like you do in equity market. U cannot expect bigger movement in this market. Some 50 paise upside or downside you can expect.

Yesterday rupee appreciated around 1 rupee. This is great movement in last 2 years.

Commission (in my case) is 0.03 paise for 100 rupees. That is per lot it will come approximately Rs.30 (both sides put together).