Forex trading & trading contest returns

General
1

Hello,

When can we see zerodha start with global forex trading ? @nithin There are many platforms now which are promoting forex trading in India. Octafx was even a sponsor of Delhi capitals in IPL

Also, I see traders making insane returns in forex because of leverage.

Are these returns even possible ? There are many with more than 1000% returns a month. is this because of 1:500 leverage ?

Even copy traders have great returns : OctaFX CopyTrading - Investment Platform for Everyone

Can active users shed some light ? @ANKIT_T @t7support @samsingh @AlgoEye @ronin_sha @raoawesome @AlgoEye @trader_dude @neha1101 @goutam

2

wow I thought they were illegal and confined to youtube ads.

About the returns, stop dreaming. Greed ke baad fear bhi ayega eventually.
Leverage increases both rewards and risk. forex is generally less volatile hence they have more leverage i think.
And 1000% per month => capital will go to 0 soon enough.

Forex is probably more competitive than closed Indian markets. Some of the international traders that i trust have generally indicated that you should target around 20% per year on average while managing risk.

SEBI goes after retail, god knows why they don’t go after scummy companies like these. And sureshot, jackpot ones that freely advertise on youtube / sms / god knows what else.

1 Like
3

@SpacemanSpiff Lol many of my friends have recieved gifts from octafx and trade successfully with it. I know about average returns but there are forex traders like Steve cohen who used to average $1,00,000 a day. George soros too made it big.

I see many indian traders too in that contest. I want to know about strategy and risk management when generating such high returns.

4

ok man, live your dream. But with such high returns, you don’t need to bet the house, right ? For your own sake, don’t do that and bet only what you can afford to lose. Start small.

Only trading in INR pairs is allowed by RBI.

20% a year compounded on average was suggested in vids by some long established traders like Adam Grimes and Andrea unger. Unger won a trading championship 4 times with aggressive trading making exponential returns. In one of the contest that he won, he said he was 1 trade away from not being able to trade again ( in the championship). On his own account he makes around that 20% figure, he does not take crazy risks in real life. Real life is not a tournament. Indian markets are less competitive, so likely we can do a bit better but not this much.

Its funny what people can expect … 1000% returns a month ! I met a guy some time back who claimed to make 10% per day too. Funny stuff.

5

@SpacemanSpiff bet the house ? Are you out of your mind ? I am simply asking strategies, risk management etc. If you see the traders, they have their trades open and you can analyse it. I myself too trade forex.

As far as RBI guidelines, these platforms are legal. They have been sponsor of ipl too. Cross currency pairs are allowed, RBI says just you should not buy in euro,usd,jpy etc. On these platforms, you deposit in INR and withdraw in INR only. So research a little before being so skeptical and narrow minded about everything.

6

As far as I know forex trading in India is not legal unless we are trading in NSE currency pairs or authorised ETPs.

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https://m.rbi.org.in/Scripts/FAQView.aspx?Id=146

7

Hello,

There is no problem in trading with platforms like octafx. They are registered with sebi as a private limited company. You deposit in INR, withdraw in INR. By doing this, they seem to have find out a way by doing this. I too trade on these platforms. That circular is for trading forex spot and not futures. On these platforms, you do not buy in pound, euro and so on. You deposit in INR, withdraw in INR. Its legal, octafx is heavily invested in India with sponsor of delhi capitals as well.

As far as returns of those contest, forex leverage is 1:500, so returns could be high, then so is the other side of blowing up your account. Trade smartly.

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8

Nope @samsingh

9

Which lala land are you guys living in still ?

It has recieved Best forex broker award in India too. It is registered with sebi as a private limited company. It is sponsor of Delhi capitals in IPL. So Ipl and BCCI would allow an illegal company to sponsor them ?

They have exploited a loophole like I said- you are not violating any FEMA act. You deposit in INR, get back in INR. Its very simple. You are not doing transaction in euro or pound or yen. Money is not going out of India like when you trade forex spot.

10

You may want to go through this section of the link shared earlier.

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11

@t7support I have joined my SBI account with octafx and trade with them. It does not affect the country’s forex cash reserve. Its a cfd product. Seamless transations. Deposit in INR, get in INR. This bypasses Fema brother.

12

First of all OCTAFX is registered with sebi as a broker for currency trading in BSE only.

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CFD platforms are not legal in India

13

Its not at all a cfd product. Both of you have got it wrong. Its currency futures as per my knowledge. I have been trading with some of these platforms, I see no problem. I thought the thread was about those humongous returns of the contest winners, it went in other direction lol

14

Leverage is quite misunderstood a lot these days.

This is based on my money management. Keeping risk 2% per trade and max Drawdown 10% which is that you stop trading after 5 consecutive losses

Well consider this. To take a position you need a volume of units worth of 3,00,000 margin and net profit made 30,000 after trading. Essentially you made 30,000/3,00,000*100 = 10%

Now assuming you made same 30,000 profit and you have leverage 1:500 and want to trade the same volume of units worth of 3,00,000 then you only need to have

3,00,000/500 = 600 as margin.

Essentially you are using 600 leveraged margin to trade a total volume margin worth of 3,00,000.

Let’s calculate return now.

30,000(return profit )/ 600 (leveraged principal ) * 100 = 5000% profit.

This is what is leverage.

But what is the reality ?

It blinds people to put a stop loss. People who use leverage themselves never actually know what volume they are trading.

So if you have 2% risk per trade with same setup of margin required 3,00,000 then you need to have :-
3,00,000 *2% = 6,000 per trade. You need to have 6,000 in hand to enter a position and For 5 trades 6,000 * 5 = 30,000.

So even if you can take position with 600 using leverage, you still need to have 30,000 in account to trade properly .

15

@raoawesome Greatly put. I understand the margin of ruin that one has to keep as idle for any stop losses. But looking at the returns, its so massive, In last several rounds, there have been many Indian traders averaging more than 1000% a month. I wonder what the strategy could be. I too trade with octafx and have recieved gifts from them for completing certain volumes, but these returns are massive. Options is not even close.

16

Don’t do this.

These are unregulated brokers and they will scam you.

The issues is they OTC brokers. so they will quote the price and make the market.
you are f**ked if you trade with any of these OTC brokers.

Why do you think they gave out prizes and make contest , to lure fools.

I repeat do not trade with ANY OTC brokers.

if you want to trade , you can always trade futures. USD,EUR,GBP,JPY. They are more than enough to satisfy any traders appetite.

17

I have no idea, unless you are looking into their account and trading history.

18

@trader_dude They are penetrating the Indian market and thats why the promotions. There is no fooling. I would be glad to share my trading statement here. There is no market manipulation as such. I look at fxcm charts in tradingview and trade in octafx and other brokers. There is no difference at all, its exactly the same. Neither my SBI branch ever issued a warning. Transactions are smooth as well. Its very legal and doable. It does not affect cash reserves of the country, you deposit in INR, withdraw in INR. There are no issues at all. Try it once. by depositing $5 and opening 0.01 lot. I trade only gbpusd, eurusd and usdjpy all of which are allowed as per RBI, just spot trading is not allowed which is not even offered.

I am more interested in how to leverage such high returns. What kind of strategies could be useful to trade forex ?

19

Copy trading on octafx too have great returns with so many Indian traders

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20

tell me something.

When you deposit your money in their account. In which country does that account exist?