I wanted to know the advantages and disadvantages of currency trading and also wanted to know whether we can trade intraday in currencies…
Yes, you can do Intraday Trading in Currency futures. The current timings for CDS in India is 9 AM to 5 PM. Here are the advantages and disadvantages of Currency Trading in my view:
Advantages:
1) Very liquid market with large number of participants.
2) High Margin availability. You can trade 1 lot (1000 quantities) of USD-INR pair for 1500 Rupees.
Disadvantages:
1) Currency pairs mostly trade in a range. So, your trend following strategies will get more whipsaws.
2) Chances of overnight risks are higher.
Read below for one of our currency trading strategies with high profitability and lower whipsaws:
http://tradingtuitions.com/afl-of-the-week-usd-inr-currency-trading-strategy/
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