is forex trading legal or illegal in india

#1
hi friends

Liberalized Remittance Scheme for Resident Individuals

The remittance under the Scheme is available to the resident individuals for any permitted current or capital account transactions or a combination of both.
The facility under the Scheme is in addition to those already included in Schedule III of Foreign Exchange Management (Current Account Transactions) Rules, 2000. Remittances towards gift and donations have been subsumed under the Scheme.
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Under the scheme, resident individuals can acquire and hold immovable property or shares ( listed or otherwise) or debt instruments or any other assets outside India ,without prior approval of the Reserve Bank. They can also open, maintain and hold foreign currency accounts with banks outside India .However remittance from India for margin or margin calls to overseas exchanges/overseas counterparty are not allowed under the scheme.



Trading at current prices is called spot trading.spot currency pairs are not traded on exchanges.it is an interbank market. what we do is we enter and exit the market through a brokerage firm with our capital investment + the leverage they offer it may be 1:500 or 1:50.Forex trading involves with risk and reward.The brokerage firms don't issue any margin calls in the global interbank financial markets.If our trades becomes loss above our capital investment they automatically close our trades with out giving any margin calls or information.so we can trade from any where around the world.
 

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