Forex trading & trading contest returns

General
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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@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

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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.

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@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?

21

NSE, BSE have currency fno. This is ok to trade. But OCTAFX also offers CFD which is not in legal space.

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@trader_dude In India with an hdfc bank branch in mumbai which is their official corporate account. Same like zerodha, I deposit the money in INR, it gets credited to my account, then I trade the allowed currency pairs through mt4 or mt5, and withdraw in INR. Money does not go out of India, neither the foreign exchange reserve is impacted. Its not illegal at all. One can trade EURUSD, GBPUSD, USDJPY which have been allowed. I have very smooth transactions too. Take a a look at the contest and copytrading page, you will find many Indian traders doing great returns. I have had no problem filing returns too. We get proper ledger statement.

23

So are you promoting them in this forum?

Also i can trade EUR/USD, GPBUSD, USDJPY with zerodha also. why would i need octafx ?

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i have been trading these pairs for some years now with zerodha.

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Lol look at my question. I am only interested in how some traders are making these insane returns. How to utilise leverage and stuff. What kind of strategies to use, risk management, position sizing etc. On another note, these platforms do not need advertisement, every second ad on youtube and insta is of octafx,fxcm and these platforms. Look so many on this forum already knew about octafx, including you :laughing:

I was only interested in returns, strategy and risk management with high leverage.

Which means they are allowed, but no liqiuidty with zerodha yet or they do not even offer it yet, they say it is in the process which might be the case.

27

if you don’t know how to trade EUR/USD pair with INR, then i can’t help you.

in which case you probably don’t understand forex pairs. so my suggestion is do not trade with high leverage until you understand forex pairs.

There is no liquidity issues. plenty of liquidity.

28

Lol such a stone age suggestion. Stamp duty is high and no 1:500 leverage.

Liquidity is there only in usdinr. You are so quick to draw judgements. You do not understand a thing about legalities, fema, how these platforms operate, you have not even explored and formed conclusions about it and myself too. I understand forex very much, I am simply out here exploring various aspects of trading with high leverage.

29

Hey @amit9, as others have already pointed out. Trading in CFD and such assets is not legal in India and even regulations have warned against dealing in such platforms.

Please check out this post for detailed information:

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