Time to collect dollars?

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agantuk

Forerunner
Not sure if we are allowed to discuss this stuff here. Anyway, here goes:

With the Rupee growing stronger and at a new 2 year high of nearly 44.30 to the Dollar, is it a good time to buy some Dollars and sell them at a later date? Is this legally allowed? If it is, anything to keep in mind, and where we can get this currency within the country?
 
Errr. .If I am not wrong we are legally not allowed to keep foreign note currency (above particular limit or something) in our possession .

EDIT : Looks like the limit is US 500$ max and unauthorized dealing of foreign currency is punishable under FEMA act :P
 
What you are referring to is Forex Trading (and is legal, AFAIK) and is done by many in India even for a living. You need to open an account with one of the brokers out there and you can trade on it, with several currencies and even commodities like Gold, not just INR and USD. Mind you, it's very volatile market and is very risky, if you know what you are doing, you can make some huge amounts with it, but needs a lot of learning and understanding of the markets. It's similar to stock trading but on a different level altogether with the kind of leverages brokers offer in Forex for your deposit.

Here are a few good brokers that are reliable.

OANDA - Forex Trading and Exchange Rates Services
Forex | Forex Trading | Currency Trading | Forex Broker

You can open a demo account and practice trading, they give you virtual money for practice. If you are really interested and want more info, just PM me. I can help you with a few resources to get started.
 
agantuk said:
Not sure if we are allowed to discuss this stuff here. Anyway, here goes:

With the Rupee growing stronger and at a new 2 year high of nearly 44.30 to the Dollar, is it a good time to buy some Dollars and sell them at a later date? Is this legally allowed? If it is, anything to keep in mind, and where we can get this currency within the country?
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Imagine

50 Rs = 1$

You buy 2$ at 100Rs.

Rupee gets stronger to 45Rs = 1$.

You sell 2$ and get 90Rs.

????

Profit?
 
whatsinaname said:
Imagine

50 Rs = 1$

You buy 2$ at 100Rs.

Rupee gets stronger to 45Rs = 1$.

You sell 2$ and get 90Rs.

????

Profit?
Click to expand...
What he meant is that now that Rupee is at a 2 year high wrt to $, he would profit when rupee gets weaker wrt dollar at a later stage, if it happens.
 
arun687 said:
What he meant is that now that Rupee is at a 2 year high wrt to $, he would profit when rupee gets weaker wrt dollar at a later stage, if it happens.
Click to expand...

The 'With the Rupee growing stronger' line confused me. :rofl:
 
arun687 said:
What you are referring to is Forex Trading (and is legal, AFAIK) and is done by many in India even for a living. You need to open an account with one of the brokers out there and you can trade on it, with several currencies and even commodities like Gold, not just INR and USD. Mind you, it's very volatile market and is very risky, if you know what you are doing, you can make some huge amounts with it, but needs a lot of learning and understanding of the markets. It's similar to stock trading but on a different level altogether with the kind of leverages brokers offer in Forex for your deposit.

Here are a few good brokers that are reliable.

OANDA - Forex Trading and Exchange Rates Services
Forex | Forex Trading | Currency Trading | Forex Broker

You can open a demo account and practice trading, they give you virtual money for practice. If you are really interested and want more info, just PM me. I can help you with a few resources to get started.
Click to expand...

Thanks for the details @arun. I will go through the links you mentioned, and get in touch with you if required! :)
whatsinaname said:
Imagine

50 Rs = 1$

You buy 2$ at 100Rs.

Rupee gets stronger to 45Rs = 1$.

You sell 2$ and get 90Rs.

????

Profit?
Click to expand...

@whatsinaname, @arun is right :) I was looking to book profits at a later date when the INR to USD conversion speaks in favour of the Dollar :)
arun687 said:
What he meant is that now that Rupee is at a 2 year high wrt to $, he would profit when rupee gets weaker wrt dollar at a later stage, if it happens.
Click to expand...
 
arun687 said:
What you are referring to is Forex Trading (and is legal, AFAIK) and is done by many in India even for a living. You need to open an account with one of the brokers out there and you can trade on it, with several currencies and even commodities like Gold, not just INR and USD. Mind you, it's very volatile market and is very risky, if you know what you are doing, you can make some huge amounts with it, but needs a lot of learning and understanding of the markets. It's similar to stock trading but on a different level altogether with the kind of leverages brokers offer in Forex for your deposit.

Here are a few good brokers that are reliable.

OANDA - Forex Trading and Exchange Rates Services

Forex | Forex Trading | Currency Trading | Forex Broker

You can open a demo account and practice trading, they give you virtual money for practice. If you are really interested and want more info, just PM me. I can help you with a few resources to get started.
Click to expand...
Very helpful
 
I concur with arun. Trading in Forex is even riskier than commodities as the leverages offered are much higher. You cannot buy just 1 USD or whatever denomination you can afford. You have to buy as per the exchange traded lots whether you can afford to hold them or not. Also read this article explaining the recent volatility in the currency market Global policymakers clash on currency policies | Reuters
 
agantuk said:
With the Rupee growing stronger and at a new 2 year high of nearly 44.30 to the Dollar, is it a good time to buy some Dollars and sell them at a later date?
Click to expand...
Question is whether 44.3 is a high, i seem to remember it increased to 38 at some point a few yrs back.
 
Don't fancy forex unless you are ready to Invest all your daytime into it.
as for trading in hard currency is considered - don't bother.
 
in forex i think they count upto 4 digits after the decimal. so 44.3 is not used instead it would be 44.3456 something like that. since even those decimals leave an impact on profit margins i think.
 
6pack said:
in forex i think they count upto 4 digits after the decimal. so 44.3 is not used instead it would be 44.3456 something like that. since even those decimals leave an impact on profit margins i think.
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Yes, but the last two decimals will be in multiples of 25. traders often don't bother to mention the first two digits
 
looks like another American game, seeing that Bbama is interested in India so keenly, since hez been in office, hez constantly eying on this sub-continent.

but it ain't that good because it is not profiting our exports.
 
Ill say you wait a few more period .Coal india Ipo is coming.And its being said around 66000 crore rupee(in terms of dollarS)worth of FII investment in QIB or high end stuff going to happen.

This will further strengthen the rupee from what i read.

And the exporters are feeling the pinch and telling the government to put RBI to dole out more rupee in market to nullify the affect.And learned its going to happen.So whatever you people want to do do it by this month around the ipo time.

After that RBI will try to save the exporters.They havent enter the scene from last 8-10 months from hat i read.
 
techno_guy said:
but I think as India's imports being more than exports strengthening of rupee is good for India
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What do we import from USA?

I dont think dollars involve there.

Whats going cheaper is higher education and foreign travels.
 
MAGNeT said:
What do we import from USA?

I dont think dollars involve there.

Whats going cheaper is higher education and foreign travels.
Click to expand...

mostly all international transactions are made using dollars as currency as it is accepted worldwide

so importing crude oil should be cheaper
 
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