Page |1

A
SUMMER TRAINING REPORT
ON
TRADING ON CURRENCY IN SWASTIKA INVESTMART LTD.

IN THE PARTIAL FULFILLMENT FOR THE AWARD

OF
BACHELOR OF BUSINESS ADMINISTRATION
(2012-15)

SUBMITTED BY:
ABHAY SETH
1259051102
B.B.A

Page |2

CONTENTS
INDEX
ACKNOWLEDEMENT
DECLARATION
EXECUTIVE SUMMARY
INTRODUCTION
OBJECTIVE
INVESTORS EXPECTATIONS
VISION AND MISSON
COMPANY PROFILE
CURRENT ACTIVITIES OF SWASTIKA
STRENGETH OF SWASTIKA
PROPOSED ACTIVITIES OF SWASITIKA
ADVANTAGE OF SWASTIKA
ABOUT THE MANAGEMENT
MILESTONES
JOIN US TO PURSUE A PROGRESSIVE CAREER
MAJOR STOCK EXCHANGE IN INDIA
BOMBAY STOCK EXCHANGE
MAJOR PLAYER IN MARKET
COMPETITION ADVANTAGE
CURRENCY
CURRENCY TRADING BASICS
ADVANTAGE OF CURRENCY TRADING
OFFERING
FOREIGN EXCHANGE MARKET FOR BEGINNERS
TOP 7 QUESTION ABOUT CUREENCY
HOW DOES FOREX DIFFER FROM OTHER MARKET?
WHERE IS THE COMMISSION IN FOREX TRADING?
WHAT IS A PIP?
WHAT ARE YOU REALLY SELLING OR BUYING IN THE
CURREENCY MARKET?
WHICH CURRENCIES ARE TRADED IN FOREX MARKET?
WHAT IS A CURRENCY CARRY TRADE?
INTRODUCTION OF FOREIGN EXCHANGE FOREX MARKET
HOW FOREX IS UNIQUE
MAKING AND LOSING MONEY
BUYING AND SELLING

PAGE NUMBER
4
5
6
8&9
10
11
12&13
14&15
16
17
18
19
20&23
24
25
26
27&28
29&32
33
34
35&36
37
38
39&40
41
42
43
44
44
45
45
46&47
48
49
50

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CURRENCY QUOTES
MOST TRADED PAIRS
BROKERS
TAXES AND BROKRAGE CHARGES
WHAT MOVE A CURRENCY
LEARN FOREX TRADING
FOREX BASIC:WHITE BELT
FUNDAMENTAL TRADING:YELLOW BELT
TECHNICAL TRADING:GREEN BELT
TACTICAL TRADING:BLUE BELT
BROKER AND TOOL:BROWN BELT
STRATEGY AND NEW:BLACK BELT
INTRODUCTION OF ONLINE AND OFFLINE TRADING
INTRODUCTION OF ODIN TRADING SOFTWARE
BIBLOGRAPHY

51
51
52
53
54
55
56
57
58
59
59
59
60&62
63&65
66

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ACKNOWLEDGEMENT
It has been a great pleasure having gone through as a trainee in
SWASTIKA INVESTM ART LTD . which is Indias well known and starkly
established retail brokerage firm. I as a trainee got to learn a lot as I had an
opportunity to work with people who are extremely profound. I w o u l d l i k e t o
e x p r e s s m y g r a t i t u d e t o Mr. SHEKHER GEHLAWAT , zonal head
(Z.H) SWASTIKA INVESTMART LTD. f o r g i v i n g a n
o p p o r t u n i t y t o e l o n g a t e m y k n o w l e d g e a n d p r o v i d i n g m e a pragmatic
experience. It would not be fair enough at all if I would not thank

Mr.VIJAY BANSAL , Assistant branch Manager (ABM) SWASTIKA

INVESTM ART LTD. f o r p r o v i d i n g e n o u g h k n o w l e d g e a n d m a k i n g u s
acquainted with the job of client servicing. Its been an amazing
experience working under her.
Last but not the least I would like to thanks each and every member of the
SWASTIKA INVESTMART LTD for being so cooperative and helpful.

ABHAY SETH

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DECLARATION
This is to certify that report entitled Trading On Currency in Sawstika Investmart
Limited which is submitted by me in partial fulfillment of the requirement for the
award of Post graduate diploma in management in S.R Collage Of Professional
Studies, Jhansi comprises only my original work and due acknowledgement has
been made in the text to all other material used.

Name-: ABHAY SETH

Roll no.-: 1259051102
Name of the guide-: MR,VIJAY BANSAL
Date: 22/07/2014

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CHAPTER - I

EXECUTIVE SUMMARY

Page |7

EXECUTIVE SUMMARY
This project provides an insight into the financial service industry of which
insurance, stocks and mutual funds form an integral part. The project focuses on the
dematerialization and stock trading services provided by SWASTIKA.
The project also includes the services industry in which SWASTIKA plays an
important role. The organization structure, history of the company, ownership
patterns, divisions and branches and different departments in the organization are
also mentioned.
The project provides an overall view on the financial standing of the company,
products offered and services provided the competitors in the industry and the
competitive edge of SAWSTIKA to have a distinctive position in the industry.
Swastika
Investmart

Limited Provide its Expert service in Capital market Operations to

institutional Investors. Company is a Member of National Stock Exchange as well as

Bombay

Stock Exchange. Swastika is slowly

but steadily gaining market share and goodwill in the

Market.

Its

strategies

for

marketing its services as well as developing a good Relationship Marketing with its
client has given an edge over the other service providers Swastika is on expansion
path and is looking forward to be in the top.

Page |8

CHAPTER II

INTRODUCTION

Page |9

INTRODUCTION

The stock broking industry is a service-oriented industry where brokers act as

agents for investors when a security is bought or sold and are compensated with a
commission. Investors would not hesitate to switch to alternative brokerage houses
if they do not obtain satisfaction. Providing quality service and hence customer
satisfaction should thus be recognised as a key strategy and a crucial element of
long-run success and profitability for stock broking businesses.
Little has been done towards understanding the expectations investors hold from
their stockbrokers. Since expectations serve as benchmark to gauge the service
level of brokers, the delivery of services that exceed customer expectations is one
strategy that can give firms a competitive advantage. Therefore, it would seem
beneficial for stockbrokerage firms, in a dynamic economic environment like India, to
provide service at a good scale of quality.

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OBJECTIVES
To create awareness among the people about the different products offered
by the company in the market through telecalling, canopies etc.
To generate leads for endorsement of deals.
To accompany the relationship manager on his visit to the prospective
clients.
To open demat accounts.
To learn how to work in a team.
To acquaint myself with work culture.
To understand the operating terminal of Equity.
To learn the trading procedure of equity market.

P a g e | 11

INVESTORS EXPECTATIONS

Providing basic knowledge to investors so as to help them in understanding

the stock market and making proper decisions in stocks.

Providing an averagely priced product so as to appeal to the investors and

have a penetration effect in the market.
Timely input (tips, entry and exist) to be provided to prospective clients so that
they can maximize their wealth by making smart decisions.

Updated info about client accounts on amounts outstanding, payment,

withdrawals, shortages etc if any.
Ancillary services like providing payout facilities, direct transfers, timely
payments and receipts, confirmations about order receiptance and delivery of
stocks, cheques, dematerialised shares etc.

Infrastructure facilities like proper sitting arrangements, water and other

refreshments, clean facility and a clean working environment.

Cordial relation with clients should be maintained so as to promote goodwill

and business of the broker.

Proper availability of RMs to attend to clients requests so as to minimize

delays in order reacceptance and minimizing customer dissatisfaction.

P a g e | 12

VISION
&
MISSION

P a g e | 13

VISION
"To be a prominent destination to enhance the Prosperity of its Clients, Investors,
Associates and Employees, always"
"To provide best value for money to clients through personalised service,
innovative products, best trading and investment strategies and state-of-the-art
technologies. We at Swastika believe that 'Our services combined with our
investors' trust will lead to a prosperous Swastika family"
We are committed for :
Integrity and transparency in all transactions,
Providing investment solutions based on quality and unbiased research,
Providing personalized services to all investors and business associates,
Achieving success through clients growth .

MISSION

Institutional Broking Empanelment with Banks, FIs, & Insurance Companies,

Mutual Fund business,
Merchant Banking Services,
Registrar & Transfer Agents Services,
Equity Placement & Venture Capital Funding,
Dealing in Forex,
Financing & Loans Syndication.

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COMPANY PROFILE

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Swastika Investmart Ltd. (Formerly known as Swastika Fin-Lease Ltd.), a Public Limited Company, was
incorporated in 1992 with its Registered Office in Mumbai and Administrative office at Indore (M.P.). It was
promoted by Mr. Sunil Nyati belonging to the Swastika group of Rajasthan, engaged in diversified business
since 1959.

In the year 1995 the company came out with a Public issue of 15 Lac equity shares of Rs.10/- each for
cash at par, aggregating Rs.150 Lacs. The shares of company are listed on BSE and is one of the few
listed companies, engaged in Stock broking and Capital Markets activities.

Since incorporation till 1998, the company was actively involved in the field of Hire Purchase and Lease
Finance. It started the stock broking business as a sub-broker in the year 1998 and after getting the
experience and with the blessings of its satisfied customers, it took the Corporate Membership of NSE in
2000 and BSE in 2004. Later, it got registered with CDSL in 2006 as Depository Participant as well.

In the year 2007 the company has acquired membership of two premier Commodity Exchanges of India,
NCDEX and MCX through its wholly owned subsidiary company Swastika Commodity Pvt. Ltd. It has also
got the corporate membership of Currency Derivatives with NSE and MCX-SX in the year 2008. In 2009
company has started the services of Portfolio Management Services after being Registered with the SEBI
for the same. In year 2010, after having more than 20,000 clients in CDSL, NSDL Depository added in the
Company Portfolio. Company has also taken Member ship of USE & ICEX.

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CURRENT ACTIVITIES OF SWASTIKA

Stock broking NSE & BSE Equities & Derivatives.
Commodity Trading NCDEX & MCX, ICEX & NCDEX SPOT
Exchange.
Currency Broking NSE & MCX-SX & USE - Currency Derivatives.
Depository Services NSDL & CDSL.
Portfolio Management & Investment Advisory Services.
Mutual Funds And Fixed Deposits Investments.
Initial Public Offering ( IPO) And IPO Financing.
Technical Analysis and Research based advice.
Internet Based Trading.

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STRENGTHS OF SWASTIKA
Corporate Membership of NSE, BSE, NCDEX & MCX-SX, ICEX & USE
Internet & Mobile Based Trading Platform.
Depository Participants of NSDL & CDSL
24 * 7 Web Base Back Office Software
Own Private VSAT Net Work
30 Own Branches
Business Partners and Sub Brokers More than 500
CTCL Net Work More than 1000 Odin Licenses
More than 40000+ Registered Clients (Individual & Corporate).
Company Listed at BSE since 1995.
In House Technical Analysis & Research team.
Strong team for Fundamental Equity Analysis & Research.
Team for Derivative strategies trading.
Annual turnover in C M & F&O (NSE & BSE): More than Rs. 50,000
Crores.
Annual turnover in Commodity (NCDEX & MCX): More than Rs. 60000
Crores.
Annual turnover in Currency (NSE & MCX-SX): More than Rs. 12000
Crores.

P a g e | 18

PROPOSED ACTIVITIES OF SWASTIKA

Institutional Broking Empanelment with Banks, Financial Institutions and
FIIs.
Merchant Banking Services.
Registrar & Transfer Agents Services.
Equity Placement & Venture Capital Funding.
Dealing in Forex.
Financing & Loans Syndication
Insurance Broking

P a g e | 19

ADVANTAGE OF SWASTIKA
Started from Zero
Our biggest strength is that we started our stock broking business from level zero, as a
Sub broker and later took trading memberships. Hence, we understand the needs of
our clients and our business partners very well.

Integrated and transparent services

We value integrity and transparency in clients transactions and provide the best value
for money to our clients. Our dedicated relationship managers are trained to provide
excellent services and complete satisfaction to all their clients .

All services under one umbrella

All the memberships are in one Company name, no hassle of account transfers,
deliveries adjustments. One can buy stock in one exchange and sell in another and
get arbitrage opportunities, absolutely hassle-free.

Accurate and timely research

We are always endeavored to provide timely research based advice to our clients. Our
research team comprises of experienced Fundamental, Technical and Derivative
Strategies analysts.

Wide range of Services

We are offering Stock, Commodities and Currencies broking, Investment Advisory
Services, Depository Services, PMS, IPO & Mutual Fund Distribution etc.

24*7 Online Back Office Software

Web-enabled centralized 24*7 back office software, providing direct access to all
Branches, Business associates and clients to complete account related information,
anytime-anywhere.

P a g e | 20

ABOUT THE MANAGEMENT

Swastika is managed by a team of 200+ experienced and qualified
professionals across all the levels of management. The company was
promoted by Mr. Sunil Nyati

KEY PERSONNEL

Mr

Sunil

Nyati,

Managing

Director

Swastika has been on a growth path under his able leadership and rich experience. He is a
science graduate, having more than 15 years of experience in capital markets. He has been our
guide all throughout success path of Swastika. His values of integrity and transparency have
been inculcated in all the employees. He always innovates new ideas, adapts latest technology
so as to provide quality and unbiased investment solutions to the investors.

P a g e | 21

Mr.

Anil

Nyati

Director

A commerce graduate having 20 years of experience in business development and marketing.

He has played a key role in establishment of regional offices in Jaipur and Delhi for
establishment of branch network across Rajasthan, UP and Hariyana. He currently heads
business development and marketing for the company for North region.

Mr.

Vinod

Gupta

Director

A chartered accountant having overall 12 years experience in financial services and 6 years of
experience in the Merchant Banking Industry. He is with the organisation since 1996 and is
instrumental in setting up Company's business in Rajasthan and managing portfolio of High net worth
individuals of his region. He is also developing the Merchant Banking and Private Equity placement
business of the company.

P a g e | 22

Mrs.

Anita

Nyati,

Director

Mrs. Anita Nyati has been with Swastika Investmart Ltd for 15 years and has served as capital market
consultant and accounts advisor. Her academic qualifications include Bachelor in Commerce and NCFM
Certification in Capital Market and Derivatives Modules. She has over 20 years experience in accounting
and capital market research.

Mr. Vijay Kumar Chowdhary, Director

Marketing
Mr. Vijay Kumar Chowdhary with us as a Director Marketing to take care of all the Marketing and Sales
Function of the Swastika Investmart Limited. Mr. Chowdhary enjoy around 40 years of experience in the
various fields like Marketing, Supply Chain Management, Administration, Global Project handling, these
functional responsibilities were managed on a Senior position in a leading groups of India like U.P. Steels
Ltd., Steel Tubes of India Ltd., Ranbaxy Laboratories, Kinetic Honda Motors Ltd, Kinetic Engineering &
Mahindra Two Wheelers Ltd.

P a g e | 23

Mr. Vinit Rathi, Vice President - Marketing

An MBA with good experience in marketing for distribution of shares, derivatives market and other financial
services and development of Franchises and Sub broker network. He is with the organisation since 2005
and his administrative and technical skills help us to continuously improve our operations and provide
excellent services to all our Channel Partners.

P a g e | 24

MILESTONES
1992 : Incorporation with registered Office at Mumbai.
1993 : Actively involved in financing. Hire-purchase and leasing business.
1995 : Came out with an initial Public Issue, Listed at Bombay Stock
Exchange.
1998 : Registered with RBI as NBFC,
2000 : Membership of NSE - Capital Market Division.
2002 : Membership of NSE - Future & Option Segment.
2003 : Setting up Research Desk and Mutual Fund Desk.
2004 : Membership of BSE - Capital Market Division
2005 : Centralised Back Office Software successfully implemented.
2006 : Registered with CDSL as Depository Participants.
2007 : Membership of NCDEX & MCX.
2008 : Membership of Currencies Derivatives of NSE and MCX-SX.
2009 : Starting of SEBI Registered Portfolio Management Services.
2010: Starting of NSDL Services, Membership of USE & ICEX.
2011: Starting of NCDEX Spot Exchange.

P a g e | 25

JOIN US TO PURSUE A PROGRESSIVE

CAREER
BRANCH MANAGER
MERCHANT BANKING
URGENT OPENING FOR WEB DESIGNER
OPEN FOR ONLINE BIDDING EXCUTIVE
CUSTOMER SERVICE EXECUTIVE
FUNDAMENTAL ANALYAT
ONLINE MARKETING MANAGER
BRANCH MANAGER
EXECUTIVE-BACK OFFICE
BUSINESS DEVELOPMENT OFFICER-SIFMR
TECHNICAL ANALYAT CFA
SYSTEM NETWORK ENGINEER
BUSINESS DEVELOPMENT EXECTIVE
REGIONAL BRANCH HEAD
FRANCHIEE MANAGER
COMMODITY TECHINAL ANALYAT
TELECALLER
RECEPTIONST

P a g e | 26

MAJOR STOCK EXCHANGES IN INDIA

NSE was incorporated in 1992 and was given recognition as a stock exchange in April 1993. It
started operations in June 1994, with trading on the Wholesale Debt Market Segment.
Subsequently it launched the Capital Market Segment in November 1994 as a trading platform for
equities and the Futures and Options Segment in June 2000 for various derivative instruments.
NSE has been able to take the stock market to the doorsteps of the investors. The technology has
been harnessed to deliver the services to the investors across the country at the cheapest
possible cost. It provides a nation-wide, screen-based, automated trading system, with a high
degree of transparency and equal access to investors irrespective of geographical location. The
high level of information dissemination through on-line system has helped in integrating retail
investors on a nation-wide basis. The standards set by the exchange in terms of market practices,
Products, technology and service standards have become industry benchmarks and are being
replicated by other market participants. Within a very short span of time, NSE has been able to
achieve all the objectives for which it was set up. It has been playing a leading role as a change
agent in transforming the Indian Capital Markets to its present form. The Indian Capital Markets
are a far cry from what they used to be a decade ago in terms of market practices, infrastructure,
technology, risk management, learing and settlement and investor service.

P a g e | 27

BOMBAY STOCK EXCHANGE

Background:

The BSE Sensitive Index (1978-79=100) has, to a considerable extent, been

serving the purpose of quantifying the price movements as also reflecting
the

sensitivity

of

the

market

The number of companies listed on the

in
Bombay

an

effective
Stock

manner.

Exchange has

registered a phenomenal increase from 992 in the year 1980 to about 4800
companies by the end of July 2005 and their combined market capitalization rose from Rs.
5,421 crores to around Rs. 18, 00,000crores at end of July 2005.These factors necessitated
compilation of a new broad-based index series reflecting the present market trends in a
more effective manner and providing a better representation of the increased equity
stocks, market capitalization as also the newly emerged industry groups. Towards
this end, the Exchange constructed and launched on 27th May 1994, two index series
viz. the BSE-200 and the DOLLEX.
Coverage:
The equity shares of 200 selected companies from the specified and non-specified
lists of this Exchange have been considered for inclusion in the sample for `BSE-

P a g e | 28

200'. The selection of companies has primarily been done on the basis of current
market capitalization of the listed scripts on the exchange. Besides market capitalization, the
market activity of the companies as reflected by the volumes of turnover and certain
fundamental factors were considered for the final selection of the 200 companies.

P a g e | 29

MAJOR PLAYERS IN MARKET

ICICI Direct.com
Sharekhan

Kotak securities
Indiabulls

HDFC Securities
Karvy

Angel broking

India Infoline ltd.

P a g e | 30

ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (hereinafter referred

to as website) where as IWTL is an affiliate of ICICI bank limited and the website is
owned by ICICI bank limited. IWTL has launched and established an online trading
service on the website.
Products and services
Investing in mutual funds
Personal finance
Computer services features
IPOs
Margin trading
Margin plus trading
Call trading
Trading on NSE/BSE

Sharekhan is Indias leading online retail broking house. Launched on February 8,

2000 as an online trading portal, Sharekhan has today a pan-India presence with
over 1,529 outlets serving 950,000 customers across 450 cities. It also has
international presence through its branches in the UAE and Oman. Sharekhan offers
services like portfolio management, trade execution in equities, futures &options,
commodities, and distribution of mutual funds, insurance and structured products.

P a g e | 31

Kotak Securities Limited, a subsidiary of Kotak Mahindra Bank, is the stock

broking and distribution arm of the Kotak Mahindra Group. The company was
set up in 1994. Kotak Securities is a corporate member of both The Bombay
Stock Exchange and The National Stock Exchange of India Limited. Its
operations include stock broking and distribution of various financial
products - including private and secondary placement of debt and equity and
mutual funds. Currently, Kotak Securities is one of the largest broking houses in
Indiaw i t h w i d e g e o g r a p h i c a l r e a c h . T h e c o m p a n y h a s f o u r m a i n a r e
as of business:
Institutional Equities,
Retail (equities and other financial products),
Portfolio Management and
Depository Services.

Indiabulls Group is one of the country's leading business houses with business
interests in Power, Financial Services, Real Estate and Infrastructure. Indiabulls
Group companies are listed in Indian and overseas financial markets. The Net worth
of the Group is Rs 16,844 Crore and the total planned capital expenditure of the
Group by 2013-14 is Rs 35,000 Crore. Indiabulls Securities (ISL) is one of India's
leading capital markets companies providing securities broking and advisory
services. Indiabulls Securities also provides depository services, equity research
services and IPO distribution to its clients and offers commodities trading through a
separate company. Indiabulls Securities is a pioneer of on-line securities trading in
India. Indiabulls Securities Limited (ISL) is the pioneer in Retail Broking Industry
having a pan India presence and providing services to a customer base exceeding
half a million. ISL is the first and only brokerage house to be assigned the highest
ratingBQ-1 by CRISIL. The company through various types of brokerage accounts
provides product and services related to purchase and sale of securities listed in
NSE and BSE. It also provides depository services, equity research services, mutual
fund, and IPO distribution to its clients.

P a g e | 32

HDFC Securities are the subsidiary of (Housing development finance corporation)

.HDFC securities would have an exclusive discretion to decide the customers who
would be entitled to its online investment services. It also serves the right to decide
on the criteria based on which customers will be chosen to participate in these
services. The present websites contain features of services that they offer in due
course. The launch of new services in subjected to the clearance of the regulators
i.e SEBI, NSE, BSE .
Products offered-:
Online trading for Resident & Non-resident Indians.
Cash & carry on both NSE and BSE.
Day Trading on both NSE and BSE.
Trade in Futures and Options on NSE.
Online IPOs.
Telephone based broking (Equity and commodity).

Indiainfoline.com Securities Pvt. Ltd. Is a wholly owned subsidiary of

Indiainfoline.com ltd. And is the stock broking arm of Indiainfoline.com. The
subsidiary was formed to comply with regulatory guidelines.
www.5paise.com is a focused website of online stock group. IILSPL has applied for
trading membership of the BSE under securities and exchange board of India (stock
brokers and sub brokers) rules 1992.
Products offered by India Infoline Securities Pvt. Ltd.
Stock market- IISPL deals in stock market by trading in equity and derivatives.
Personal finance- it deals in mutual funds and insurance. Other trading- it provides
services in stock and commodity trading (through internet)

P a g e | 33

COMPETITIVE ADVANTAGE
Flexi brokerage and exposure.
Call centre support provided for trading, back office and IT support.
Fully automated processes.
Feature rich software.
Interest on cash margin deposited with Religare.
Target group- Mass market.
USP
Interest on cash margin deposited.
Better quality product at competitive brokerage.

P a g e | 34

CURRENCY
The currency market is the largest and most liquid financial market in the
world with a turnover of more than $ 5 Trillion on a daily basis. With the
introduction of currency derivatives in 2008, the Indian market is poised
for growth by increasing its share in the world forex trade.
Swastika extends the opportunity to benefit from this market in India. We
offer a simple, convenient and profitable platform to trade and hedge in
the Currency derivatives market and diversify your investment portfolio

How are currency prices determined?

Currency prices are affected by a variety of economic and political
conditions, but probably the most important are interest rates,
international trade, inflation, and political stability. Sometimes
governments actually participate in the foreign exchange market to
influence the value of their currencies. They do this either by flooding the
market with their domestic currency in an attempt to lower the price or,
conversely, buying in order to raise the price. This is known as central
bank intervention. Any of these factors, as well as large market orders,
can cause high volatility in currency prices. However, the size and volume
of the FOREX market make it impossible for any one entity to drive the
market for any length of time.

P a g e | 35

CURRENCY TRADING BASICS

The foreign exchange market is the term given to the worldwide financial
market which is both decentralized and over-the-counter, which
specializes in trading back and forth between different types of
currencies. This market is also known as the Forex market. In recent
times, both investors and traders located all around the world have begun
to notice and recognize the foreign exchange market as an area of
interest, which is speculated to contain opportunity.
However, before considering treading these waters, it is important to first
understand how transactions are conducted within the foreign exchange
market. It is also necessary to first explain what the basics are of trading
foreign currency. Failure to fully and completely understand this art prior
to journeying off into this market would render a person lost in a matter of
minutes, just where they would never expect it. Thus, this article has been
presented, intending to explain currency trading basics thoroughly.
The foreign exchange market is the term given to the worldwide financial
market which is both decentralized and over-the-counter, which
specializes in trading back and forth between different types of
currencies. This market is also known as the Forex market. In recent
times, both investors and traders located all around the world have begun
to notice and recognize the foreign exchange market as an area of
interest, which is speculated to contain opportunity.

P a g e | 36

P a g e | 37

ADVANTAGE OF CURRENCY TRADING

Accessible to small traders The minimum size of the USDINR futures

contract is USD 1,000. Similarly EURINR future contract is EURO 1000,
GBPINR future contract is GBP 1000 and JPYINR future contract is YEN
1,00,000. These are well within the reach of most small traders. As the
profits or losses in the futures market are also paid / collected on a daily
basis, the scope of accumulation of losses for participants gets limited.
No Middlemen :Allows clients to interact directly on the exchange platform.
Opportunity to Hedge foreign currency exposure risk.
Minimal Cost: Low Brokerage, Lower taxation ( No Securities Transaction
Tax).
Lower margins and Higher Leverage.
Currency Trading has no insider trading risk due to the large size of the
forex market and its decentralized nature.
Highly Safe - Governed by both the SEBI and RBI.
Currency Futures are cash settled, thus providing convenience to the
investors.

P a g e | 38

OFFERING
Access to NSE Currency Futures segment, MCX-SX and USE currency
segments.
Technologically advanced trading platform and service dissemination
Research calls for all currency pairs: USDINR, EURINR, GBPINR, JPYINR
Competitive Brokerage Schemes
Personalized service to time entry and exit points
Daily Fundamental and technical Research Reports

P a g e | 39

FOREIGN EXCHANGE MARKET FOR

BEGINNERS
The foreign exchange market or forex market as it is often called is the
market in which currencies are traded. Currency Trading is the worlds
largest market consisting of almost trillion in daily volume and as
investors learn more and become more interested, the market continues
to rapidly grow. Not only is the forex market the largest market in the
world, but it is also the most liquid, differentiating it from the other
markets. In addition, there is no central marketplace for the exchange of
currency, but instead the trading is conducted over-the-counter. Unlike
the stock market, this decentralization of the market allows traders to
choose from a number of different dealers to make trades with and allows
for comparison of prices. Typically, the larger a dealer is the better access
they have to pricing at the largest banks in the world, and are able to pass
that on to their clients. The spot currency market is open twenty-four
hours a day, five days a week, with currencies being traded around the
world in all of the major financial centers.Learn more about currency
trading online.
All trades that take place in the foreign exchange market involve the
buying of one currency and the selling of another currency
simultaneously. This is because the value of one currency is determined
by its comparison to another currency. The first currency of a currency
pair is called the base currency, while the second currency is called the
counter currency. The currency pair shows how much of the counter
currency is needed to purchase one unit of the base currency. Currency
pairs can be thought of as a single unit that can be bought or sold. When
purchasing a currency pair, the base currency is being bought, while the
counter currency is being sold. The opposite is true, when the sale of a
currency pair takes place. There are four major currency pairs that are
traded most often in the foreign exchange market. These include the
EUR/USD, USD/JPY, GBP/USD, and USD/CHF.

P a g e | 40

Forex Capital Markets (FXCM) is an online currency trading firm that

offers a free demo account to traders who are new and interested in the
foreign exchange market. Registering for a demo account allows a new
trader to download the online trading platform that is used by the
companys clients trading live accounts and make trades as if they were
doing it with real money. The demo account is an excellent way to
experiment with the foreign exchange market while learning your way
around the trading platform. It allows you to experience every step of
currency trading including choosing currency pairs, deciding how much
risk to take, tracking the time and dates of placed trades, deciding how
long to stay in the trade, and when to exit the trade. It also allows the
placing of stop and limit orders on trades.
Information about trading and specifically about how to use the online
trading platform can be found on the FXCM webpage. In addition, FXCM
offers FREE interactive online seminars that are extremely useful to both
new and experienced currency traders. These educational webinars, as
they are called are run by experienced financial strategists and range in
topics from trading specific news events to trading the Euro. In addition to
the webinars, FXCM also offers numerous online courses that teach
investors how to trade the currency market.

P a g e | 41

TOP 7
QUESTIONS
ABOUT
CURRENCY
TRADING

P a g e | 42

HOW DOES THE FOREX MARKET DIFFER

FROM OTHER MARKETS?
Unlike stocks, futures or options, currency trading does not take place on a
regulated exchange. It is not controlled by any central governing body, there are
no clearing houses to guarantee the trades and there is no arbitration panel to
adjudicate disputes. All members trade with each other based on credit agreements.
Essentially, business in the largest, most liquid market in the world depends on
nothing more than a metaphorical handshake
The FX market is different from other markets in some other key ways that are sure
to raise eyebrows. Think that the EUR/USD is going to spiral downward? Feel free
to short the pair at will. There is no uptick rule in FX as there is in stocks. There are
also no limits on the size of your position (as there are in futures); so, in theory, you
could sell $100 billion worth of currency if you had the capital to do it. If your biggest
Japanese client, who also happens to golf with the governor of the Bank of Japan
tells you on the golf course that BOJ is planning to raise rates at its next meeting,
you could go right ahead and buy as much yen as you like. No one will ever
prosecute you for insider trading should your bet pay off. There is no such thing as
insider trading in FX; in fact, European economic data, such as German
employment figures, are often leaked days before they are officially released.

P a g e | 43

WHERE IS THE COMMISSION IN FOREX

TRADING?
Investors who trade stocks, futures or options typically use a broker, who acts as
an agent in the transaction. The broker takes the order to an exchange and
attempts to execute it as per the customer's instructions. For providing this
service, the broker is paid a commission when the customer buys and sells the
tradable instrument.
The FX market does not have commissions. Unlike exchange-based markets, FX
is a principals-only market. FX firms are dealers, not brokers. This is a critical
distinction that all investors must understand. Unlike brokers, dealers
assume market risk by serving as a counterparty to the investor's trade. They do
not charge commission; instead, they make their money through the bid-ask
spread.
In FX, the investor cannot attempt to buy on the bid or sell at the offer like in
exchange-based markets. On the other hand, once the price clears the cost of the
spread, there are no additional fees or commissions. Every single penny gain is
pure profit to the investor. Nevertheless, the fact that traders must always
overcome the bid/ask spread makes scalping much more difficult in FX.

P a g e | 44

WHAT IS A PIP?
Pip stands for "percentage in point" and is the smallest increment of trade in FX.
In the FX market, prices are quoted to the fourth decimal point. For example, if a
bar of soap in the drugstore was priced at $1.20, in the FX market the same bar of
soap would be quoted at 1.2000. The change in that fourth decimal point is called
1 pip and is typically equal to 1/100th of 1%. Among the major currencies, the
only exception to that rule is the Japanese yen. One Japanese yen is now worth
approximately US$0.01; so, in the USD/JPY pair, the quotation is only taken out
to two decimal points (i.e. to 1/100th of yen, as opposed to 1/1000th with other
major currencies).

WHAT ARE YOU REALLY SELLING OR

BUYING IN THE CURRENCY MARKET?
The short answer is "nothing". The retail FX market is purely a speculative
market. No physical exchange of currencies ever takes place. All trades exist
simply as computer entries and are netted out depending on market price. For
dollar-denominated accounts, all profits or losses are calculated in dollars and
recorded as such on the trader's account.
The primary reason the FX market exists is to facilitate the exchange of one
currency into another for multinational corporations that need to trade currencies
continually (for example, for payroll, payment for costs of goods and services
from foreign vendors, and merger and acquisition activity). However, these dayto-day corporate needs comprise only about 20% of the market volume. Fully
80% of trades in the currency market are speculative in nature, put on by large
financial institutions, multibillion dollar hedge funds and even individuals who
want to express their opinions on the economic and geopolitical events of the
day.

P a g e | 45

WHICH CURRENCIES ARE TRADED IN THE

FOREX MARKET?
Although some retail dealers trade exotic currencies such as the Thai baht or the
Czech koruna, the majority trade the seven most liquid currency pairs in the world,
which are the four "majors":
EUR/USD (euro/dollar)
USD/JPY (dollar/Japanese yen)
GBP/USD (British pound/dollar)
USD/CHF (dollar/Swiss franc)
and the three commodity pairs:
AUD/USD (Australian dollar/dollar)
USD/CAD (dollar/Canadian dollar)
NZD/USD (New Zealand dollar/dollar)
These currency pairs, along with their various combinations (such as EUR/JPY,
GBP/JPY and EUR/GBP), account for more than 95% of all speculative trading in
FX. Given the small number of trading instruments - only 18 pairs and crosses are
actively traded - the FX market is far more concentrated than the stock market.

WHAT IS A CURRENCY CARRY TRADE?

Carry is the most popular trade in the currency market, practiced by both
the largest hedge funds and the smallest retail speculators. The carry
trade rests on the fact that every currency in the world has an interest rate
attached to it. These short-term interest rates are set by the central
banks of these countries: the Federal Reserve in the U.S., the Bank of
Japan in Japan and the Bank of England in the U.K.
The idea behind the carry is quite straightforward. The trader goes long
the currency with a high interest rate and finances that purchase with a
currency with a low interest rate. For example, in 2005, one of the best
pairings was the

P a g e | 46

INTRODUCTION OF
FOREIGN EXCHANGE

FOREX
MARKERT

P a g e | 47

The foreign exchange market (forex, FX, or currency market) is a global

decentralized market for the trading of currencies. The main participants in this
market are the larger international banks. Financial centers around the world
function as anchors of trading between a wide range of multiple types of buyers and
sellers around the clock, with the exception of weekends. The foreign exchange
market determines the relative values of different currencies.[1]
The foreign exchange market works through financial institutions, and it operates on
several levels. Behind the scenes banks turn to a smaller number of financial firms
known as dealers, who are actively involved in large quantities of foreign exchange
trading. Most foreign exchange dealers are banks, so this behind-the-scenes market
is sometimes called the interbank market, although a few insurance companies
and other kinds of financial firms are involved. Trades between foreign exchange
dealers can be very large, involving hundreds of millions of dollars.[citation
needed]
Because of the sovereignty issue when involving two currencies, Forex has
little (if any) supervisory entity regulating its actions.
The foreign exchange market assists international trade and investments by
enabling currency conversion. For example, it permits a business in the United
States to import goods from the European Union member states,
especially Eurozone members, and payeuros, even though its income is in United
States dollars. It also supports direct speculation and evaluation relative to the value
of currencies, and the carry trade, speculation based on the interest rate differential
between two currencies.[2]
In a typical foreign exchange transaction, a party purchases some quantity of one
currency by paying for some quantity of another currency. The modern foreign
exchange market began forming during the 1970s after three decades of
government restrictions on foreign exchange transactions (the Bretton Woods
system of monetary management established the rules for commercial and financial
relations among the world's major industrial states after World War II), when
countries gradually switched to floating exchange rates from the previous exchange
rate regime, which remained fixed as per the Bretton Woods system.

P a g e | 48

HOW FOREX IS UNIQUE

Fewer Rules: Unlike the trading of stocks, futures or options, currency trading
does not take place on an exchange with rules, like the New York Stock
Exchange. It is not controlled by any central governing body, and there are
no clearing houses to make sure the party you are buying the currency from
actually pays up. In fact, if you had exclusive information, and used it to make
a lot of money, legal issues would not arise, like they would it in the stock
market.
No Commissions: There are no exchange, brokerage or clearing fees in the
FX market. Instead, brokers make money on the difference in price you pay to
buy, or the amount you receive when you sell, currencies.
Trade Whenever You Want: Forex markets are open 24 hours a day, so if you
are a night owl or early riser you can set your own trading schedule.
No Limit to How Much Currency You can Buy: If you had $1 billion U.S. dollars
you wanted to sell, you could do it! There's no limit to how much money you
can buy or sell.
Easy to Get In and Out: You can buy and sell currencies with the click of a
button, instantaneously. The market is so large that you will never be stuck if
you wanted to get rid of or buy - your stockpile of currency.

P a g e | 49

MAKING AND LOSING MONEY

How People Make or Lose Money Doing It
By converting your money into a different currency, you are hoping that
the new currency increases in value. When you convert back to your
initial currency, ideally you will have more money than you started with.
Let's take a look at a simple example of how someone can make money
from a forex transaction. Suppose you have $900 U.S. dollars and you
exchange that for $1000 Canadian dollars. One week later, the
CAD/USD exchange rate goes up from 0.90 to 1.0, so the Canadian dolar
which you own has increased in value compared to the U.S. dollar. You
could then exchange the $1000 CAD you have back into U.S. dollars and
you would receive $1000 USD.
So you started with $900 USD, you now have $1000 USD, a profit of
$100 USD.
Your Decision

CAD USD

You buy 1,000 CAD at the

+1000 -900
CAD/USD rate of 0.90
A week later, the
CAD/USD rises to 1.00 and
-1000 +1000
you exchange your 1,000
CAD back into U.S. dollars
Profit

+100

P a g e | 50

BUYING AND SELLING

What are you really selling or buying in the currency market?
You are buying and selling money. In the forex market, think of money as
a commodity, you are buying a currency hoping that its value will
increase, and if you are selling you are betting that it will decrease. Like
any other commodity, the price of currencies is displayed in quotes in
the spot market, and traded in currency pairs; like the US dollar and the
Canadian dollar (USD/CAD) or the US dollar and Japanese yen
(USD/JPY).
Also, although you are buying another country's currency, you are not
buying anything physical', and thus no physical exchange of money ever
takes place. This can be confusing, but think of it like buying shares of
a publicly traded company where everything is done electronically inside
your trading account. But unlike the stock market, the forex market
doesn't have a central exchange like the New York Stock Exchange for
instance. Instead the forex market is an interbank market, which means
it's all connected together in a network of banks and institutions.
You can also think of buying currencies as buying shares in a country,
you are betting on the success or failure of a particular country's
economy. You'll learn more about reading a currency quote and the
economics that move currency rates in the upcoming Introduction to forex
section.

P a g e | 51

CURRENCY QUOTES
Currencies are quoted in pairs, for example the USD/EUR is the U.S.
dollar/euro. Using this quotation, the value of a currency is determined by
its comparison to another currency. The first currency of a currency pair is
called the base currency, and the second currency is called the quote
currency. The currency pair shows how much of the quote currency is
needed to purchase one unit of the base currency.
For example, if the USD/EUR currency pair is quoted as being USD/EUR
= 0.8000 and you purchase the pair; this means that for every 0.80 euros
you sell, you purchase (receive) US$1. If you sell the currency pair, you
will receive 0.80 euros for every US$1 you sell. The inverse of the
currency quote is EUR/USD, and the corresponding price would be
EUR/USD = 1.25, meaning that US$1.25 would buy 1 euro.

MOST TRADED PAIRS

Although some retail dealers trade exotic (less popular) currencies such
as the Thai baht or the Czech koruna, the majority trade the seven most
traded currency pairs in the world. The four most popular, also known as
"the majors" are:
EUR/USD (euro/dollar) "euro"
USD/JPY (U.S. dollar/Japanese yen) "gopher"
GBP/USD (British pound/dollar) - "cable"
USD/CHF (U.S. dollar/Swiss franc) "swissie"

P a g e | 52

BROKERS
The forex (FX) market has many similarities to the stock market, but there are some
key differences.

Choosing a Broker
There are many forex brokers to choose from, just as in any other market.
Here are some things to look for:

Look for low spreads

The spread, calculated in pips, is the difference between the price at which a
currency can be purchased and the price at which it can be sold at any given
point in time. Forex brokers don't charge a commission, so this difference is
how they make money. In comparing brokers, you will find that the difference
in spreads in forex is as great as the difference in commissions in the stock
arena.

Get the right account type

Many brokers offer two or more types of accounts. The smallest account is
known as amini account and requires you to trade with a minimum of, say,
$250, offering a high amount of leverage (which you need in order to make
money with so little down). The standard account lets you trade at a variety of
different leverages, but it requires a minimum initial investment of around
$2,000.

Things to Avoid
Sniping or Hunting
Sniping and hunting - or prematurely buying or selling near preset points - are
shady acts committed by brokers to increase profits. Obviously, no broker
admits to committing these acts.

Strict Margin Rules

When you are trading with borrowed money, your broker has a say in how
much risk you take. As such, your broker can buy or sell at its discretion,
which can be a bad thing for you. Let's say you have a margin account, and
your position takes a dive before rebounding to all-time highs. Well, even if
you have enough cash to cover, some brokers will liquidate your position on a
margin call at that low. This action on their part can cost you dearly.

P a g e | 53

TAXES AND BROKERAGE CHARGES

SERVICE CHARGE

- 12.35% ON BROKRAGE

STAMP DUTY - 100 Rs Per CRORE

TURNOVER TAX ON COMMIDITY 300 Rs
TURNOVRER TAX ON EQUITY 500 Rs

COMMODITY TRANSACTION TAX (CTT) 0.01%

SELLING SIDE

ON

ON EQUITY
SECURITY TRANSACTION TAX (STT) - 0.17% ON SEELING
SIDE
NET ASSESTS VALUE(NAV) ITS STARTS FROM 10 Rs MIN

P a g e | 54

WHAT MOVES A CURRENCY?

Fundamental Analysis
If you think it's difficult to value one company, try valuing a whole
country! Fundamental analysis in the forex market is often very
complex, and it's usually used only to predict long-term trends;
however, some traders do trade short term strictly on news releases.
There are many different fundamental indicators of currency values
released at many different times.
Here are a few:
Non-farm payrolls
Purchasing Managers Index (PMI)
Consumer Price Index (CPI)
Retail sales
Durable Goods
These reports are not the only fundamental factors to watch. There
are also several meetings that provide quotes and commentary,
which can affect markets just as much as any report. These
meetings are often called to discuss interest rates, inflation and
other issues that affect currency valuations. Even changes in
wording when addressing certain issues - the Federal
Reserve chairman's comments on interest rates, for example - can
cause market volatility.
Simply reading the reports and examining the commentary can help
forex fundamental analysts gain a better understanding of long-term
market trends and allow short-term traders to profit from
extraordinary happenings. If you choose to follow a fundamental
strategy, be sure to keep a calendar that highlights important dates
so you know when these reports are released. Your broker may also
provide real-time access to such information

P a g e | 55

LEARN FOREX TRADING

Welcome to the OFXT Dojo where you can learn the art of currency trading!
Whether you are new to forex, have some experience, or if you are just looking for
advanced strategy ideas we have what you are looking for.
Forex Basic: White Belt
Fundamental Trading: Yellow Belt
Technical Trading: Green Belt
Tactical Trading: Blue Belt
Brokers & Tools: Brown Belt
Strategy & News: Black Belt

You have to believe in yourself- Sun Tzu

P a g e | 56

FOREX BASIC: WHITE BELT

Brand New to Forex? Make your way to White Belt and follow the training path all the way through.
There is no rush, so move at your own pace.

WHAT IS FOREX?
Forex stands for the foreign exchange market. This is also referred to as the FX, Spot FX or
Currency market. All of these names are just several ways of describing the very same market.
This market has been around since the 1970s when currencies started to fluctuate when
President Nixon took the U.S. off of the gold standard. Formerly, the U.S. currency was backed by
gold and now its just backed by the faith in the governments ability to honor and back the
currency.

WHY FOREX TRADE?

ENORMOUS VOLUME
WHAT ADVANTAGE IS THAT TO YOU?
NO COMMISSIONS
24 HOUR A DAY TRADING
NO RESTRICTIONS ON SHORT SELLING

INTRUDUCTION TO CURRENCY PAIR?

MAJOR CURRENCY PAIRS
CURRENCY CROSSES
EXOTIC CURRENCY PAIRS
NOW THAT WE KNOW WHAT THE PAIRS ARE WHEN DO THEY TRADE?

FOREX ORDER TYPE?

MARKETING ORDER
LIMIT ORDER
STOP-LOSS ORDER
LIMIT ENTRY ORDER

P a g e | 57

FUNDAMENTAL TRADING: YELLOW BELT

Fundamentals of fundamental analysis. Already know what a pip is, but dont quite
understand how non-farm payrolls impacts the forex market? Begin here and we will
show you how economics and fundamentals drive the currency market forward.

MOST ACTIVE TRADING TIMES IN FOREX

When is the Forex Market Open?
Though the forex market is open 24 hours a day, there are specific times when the market is faster
moving, and its easier to make money. There are three main time zones for trading New York,
London and Tokyo. Two sessions are usually always overlapping. In terms of Eastern Standard
Time, New York is open from 9am to 5 pm, London is open from 3 am to 12 pm, and Tokyo is
open from 7pm to 4 am.
What is the Best Time to Trade?
The middle of the week is also usually the busiest time in terms of trading. Tuesday and
Wednesday shows much more movement and activity than the beginning or end of the week.
Friday is generally the slowest day, when things calm down as soon as the London session
closes. Sundays and Holidays are generally dead as well, and its unadvised to do lots of trading
then.

NFP-NON FARM PAYROLLS

Deciphering the Numbers

An increase in jobs suggests the economy is growing, which means that, all things
being equal, there will be more demand for dollars. Investors, for instance, who
were thinking of buying US assets will feel more comfortable doing so. The NFP will
usually show an increase in jobs.

P a g e | 58

TECHNICAL TRADING: GREEN BELT

Ready to Get Technical? Once you have mastered the basics,
you are ready to understand technical analysis. Learn the ancient
art of Japanese Candlesticks as well more modern techniques
like Elliot Waves.
BEST CHART CHOICES
CHOOSING A TIME FRAME
TECHNICAL ANALYSIS AND CHARTING INDICATORS
SUPPORT AND RESISTANCE
PRICE CHANNELS
GUIDE TO FIBONACCI RETRACEMENTS
MOVING AVERAGES AND TECHNICAL TRADING
BOLLINGER BANDS INTRODUCTION
COMMON CANDLESTICK PATTERNS AND HISTORY OF JAPANESE
CANDLESTICKS
JAPANESE CANDLESTICK PATTERNS
IMPORTANT CHARTING PATTERNS WHEN TRADING FOREX
LIST OF CANDLESTICK PATTERNS
HEAD AND SHOULDERS CANDLESTICK PATTERN

P a g e | 59

TACTICAL TRADING : BLUE BELT

You have learned strategy, now it is time to learn tactics. OFXT ninja training is not complete
without money management, commodity currencies or how to create a trading plan.

COMMODITY CURRENCIES
TRADING CROSS CURRENCIES
HOW TO TRADE SYNTHETIC CROSSES
FOREX OPTIONS BASICS
MONEY MANAGEMENT
RISK REWARD RATIO
CREATING A TRADING PLAN

BROKERS AND TOOLS : BROWN BELT

HOW TO CHOOSE A FOREX BROKER
HOW DO I KNOW IF I CAN TRUST MY FOREX BROKER?
HOW TO PICK A MONEY MANAGER
FOREX TRADING AND TAXES

STRATEGY AND NEWS : BLACK BELT

HOW TO SCALP THE FOREX MARKET
NEWS ANNOUNCEMENTS AND TRADING
NEWS TRADING STRATEGY
RANGE TRADING
SWING TRADING STRATEGY
TREND TRADING

P a g e | 60

INTRODUCTION OF
ONLINE TRADING
AND
OFFLINE TRADING

P a g e | 61

When you are opening an account for stock

trading the brokers ask whether you want to
open an online or offline account, many people
get confused because they do not know the
difference between the two. In order to remove
their doubts given below is the difference
between online and offline trading

P a g e | 62

TRADING
In online account the client himself or herself can trade in stock whereas in offline
account only broker can trade in stock according to instructions given by the client,
therefore an individual is dependent on brokers for execution of orders in offline trading
which is not the case with online trading.
CONVENIENCE
Online trading account is best suited for those individuals who can track the stock
market from their office or home, while for people who do not have internet facility at
office or their office blocks stock market websites than offline trading account is best
suited for them because they can give orders on phone and broker would place those
orders.
FRAUD
In online trading account there are no chances of fraud as it is you who has complete
control over your transactions while chances of fraud increases if you have offline
account because some brokers tend to trade at their discretion without taking
permission from client which may lead to losses to the client.
EXPERTISE AND KNOWLEDGE
If you do not have any knowledge about stock markets then an online account can be
risky because you may end up buying a stock on impulse without doing proper
research, whereas in offline account since a broker has been doing trading for years he
or she have more knowledge and therefore can give you proper guidance and hence
help you in taking the right decisions (however investor should be cautious as
sometimes brokers tend to give biased opinion).

P a g e | 63

INTRODUCTION OF
ODIN TRADING
SOFTWARE

P a g e | 64

ODIN Program Trading is a special trading application that facilitates auto-execution of the
trades based on the selected strategies. Program Trading can be used to take advantage of
arbitrage/spread opportunities that exist across the Cash and Futures or Calendar Spread in
various Exchanges like MCX, MCX Stock Exchange to cater the segments like Commodities,
Currency, Equities and Derivatives. The application has a built-in intelligence to search for the
opportunities that exist in the market as per the yield and other criteria defined by the user

P a g e | 65

FEATURES

Option to select touchline or weighted average price for calculation of Spread available
Option to specify the Tick size by which the order should be modified
Option to activate Square Off mode with a Timer that has an inbuilt logic to square off all
option positions by the end of the trading day
Option to specify whether user want to do a Reverse only after a Forward execution and vice
versa
Choose from the list of built-in Arbitrage, Quote drive Arbitrage (Bidding Model) as well as
Calendar Strategies (Spread IOC) that can be applied across selected stocks/contracts

BENEFITS
Enables automatic calculation and execution of complex arbitrage/spread strategies without
the need for any form of human intervention
Application performs complex calculations based on the predefined parameters on a
continual and real-time basis
Eliminates any opportunity loss that arises if the same actions are to be performed manually
Enables Members to execute strategies for Proprietary Trades or on behalf of their clients
Enables Members to run multiple strategies in a single application
Exploit the arbitrage opportunities arise in the markets automatically

P a g e | 66

BIBLOGRAPHY
WEBSITES:
www.Swastika.com
www.google.com
www.nseindia.com
www.bseindia.com
www.moneycontrol.com
www.investopedia.com
www.onlineforextrading.com

NEWSPAPERS:
HINDUSTAN TIMES
ECONOMIC TIMES
MARKET EXPRESS