What is the Forex market?
The foreign exchange (Forex or FX) market is where currencies are bought and sold against each other. Banks, companies, importers, exporters, central banks and traders all take part. Unlike a stock exchange, the global Forex market is mostly decentralised and trades around the clock on weekdays, moving between financial centres across time zones.
Currency prices move because of interest-rate decisions, inflation, economic growth, trade flows and global risk sentiment. A trader’s job is not to predict every move, but to understand why prices move, read the chart and control risk on every position.
Currency pairs explained
Currencies are always quoted in pairs. In EUR/USD = 1.0850, the first currency (EUR) is the base currency and the second (USD) is the quote currency: one euro costs 1.0850 US dollars. If the price rises, the base currency has strengthened against the quote currency.
Major pairs
Pairs that include the US dollar and another large economy’s currency, such as EUR/USD, GBP/USD and USD/JPY. They are usually the most liquid.
Minor (cross) pairs
Pairs between two major currencies without the US dollar, such as EUR/GBP or EUR/JPY.
Rupee pairs
Pairs quoted against the Indian rupee, such as USD/INR, EUR/INR, GBP/INR and JPY/INR. These are the pairs most relevant to Indian residents trading on Indian exchanges.
Pairs involving smaller or emerging-market currencies are often called “exotic” pairs. They usually have wider spreads and sharper moves.
Pips, spreads and lot sizes
- Pip: the standard unit of price change. For most pairs quoted to four decimals it is 0.0001; for yen pairs it is usually 0.01. If EUR/USD moves from 1.0850 to 1.0870, it has moved 20 pips.
- Spread: the difference between the buying (ask) and selling (bid) price. It is a cost you pay on every trade, and it widens when liquidity is low or news is released.
- Lot size: the quantity traded. Contract sizes differ between markets; on Indian exchanges each currency futures and options contract has a fixed size set by the exchange. Always read the contract specification before trading.
Leverage and margin
Margin is the money blocked to open a position; leverage lets that margin control a larger position. Leverage magnifies losses exactly as much as it magnifies gains. Many offshore platforms advertise very high leverage, which is one reason beginners lose their capital quickly on them.
In class, every Forex example starts with position sizing: how much you can lose if the stop-loss is hit, before thinking about the possible profit.
Market sessions, economic news and charts
Global currency trading moves from the Asia-Pacific session to London and then New York. Activity, liquidity and volatility change through the day, and are usually highest when the London and New York sessions overlap, which falls in the Indian evening. Indian exchange-traded currency derivatives have their own fixed trading hours, published by the exchanges.
Scheduled data can move currencies sharply: central-bank interest-rate decisions, inflation (CPI) figures, employment data and GDP. Traders follow an economic calendar and often reduce position size or stay out around major releases.
The chart-reading skills taught in our course, such as candlestick patterns, support and resistance, trend structure and multi-timeframe analysis, apply to currency charts in the same way they apply to stocks and indices.
Order types and stop-loss basics
- Market order: executes immediately at the best available price.
- Limit order: executes only at your chosen price or better.
- Stop-loss order: exits a losing position at a pre-decided level.
We also encourage students to practise on paper or a demo first and keep a trading journal of every setup, entry, exit and reason.
Forex trading in India: what the rules say
Summary prepared in October 2026 from Reserve Bank of India publications. Rules can change; always check the RBI website for the latest position.
- Under the Foreign Exchange Management Act (FEMA), Indian residents may undertake forex transactions only with persons authorised by the RBI and only for permitted purposes.
- Electronic forex trading is allowed only on electronic trading platforms authorised by the RBI or on recognised stock exchanges: NSE, BSE and the Metropolitan Stock Exchange of India.
- On these exchanges, currency futures and options are available in rupee pairs (USD-INR, EUR-INR, GBP-INR and JPY-INR) and in the cross-currency pairs EUR-USD, GBP-USD and USD-JPY, as permitted by the RBI. Check the exchange’s current contract list before trading.
- The RBI publishes an Alert List of entities that are not authorised to deal in forex or operate forex trading platforms. The list is not exhaustive: an app or website that is missing from it is not automatically authorised.
- The RBI has cautioned that residents dealing on unauthorised platforms can face penal action under FEMA.
Be careful with social-media groups, “account managers” and apps promising fixed or guaranteed returns from Forex. PSMIT teaches market concepts and risk management; we do not recommend any broker, platform or trading product.
What you learn in our global-markets module
Forex is taught as part of the “Forex, Crypto & US Markets” module in Month 2 of the Complete Trader Program. Topics below are from our published syllabus.
- Forex: currency pairs and how they move
- Global market timings and news
- US stocks and global indices
- Risk management across markets
- Crypto basics, exchanges and safety
Who should consider it
Students who want to understand how global currencies, indices and news affect Indian markets, and those who want a grounded explanation of Forex before believing claims they see online. It suits students who have completed, or are taking, the chart-analysis modules of the course.
How the classes work
- Online and offline batches, morning (10 am – 12 pm) or evening (8 pm – 10 pm).
- Teaching in Marathi, Hindi and English, with daily doubt solving and class recordings.
- Part of the 2-Month Complete Trader Program (₹13,999, or 6-month no-cost EMI on eligible cards). For a separate global-markets course fee, please call or WhatsApp us.
Your mentors are Abhijit Sir and Priyanka Ma’am. Learn more about them on our course guide.
Forex course: frequently asked questions
Is Forex trading legal in India?
It depends on how and where you trade. The RBI allows residents to trade permitted currency derivatives on recognised Indian exchanges (NSE, BSE and MSE) or on RBI-authorised platforms. Trading on unauthorised platforms can attract penal action under FEMA. Check the RBI website for current rules before you trade.
Is the Forex class taught in Marathi?
Yes. All our classes, including the global-markets module, are taught in Marathi, Hindi and English, so you can learn in the language you are most comfortable with.
Is there a separate Forex-only course?
Forex is taught in the “Forex, Crypto & US Markets” module, which is included in the 2-Month Complete Trader Program. Please call or WhatsApp us to ask whether a separate module batch is available and for its fee.
Do you recommend a Forex broker or app?
No. We teach concepts, chart analysis and risk management. Before using any platform, check whether it is authorised by the RBI or is a recognised Indian stock exchange.
Do I need experience before learning Forex?
No prior Forex experience is needed, but basic chart reading helps. The Complete Trader Program teaches chart analysis first, so you reach the global-markets module with the right foundation.
More questions are answered on our FAQ page.
Official resources
- RBI press release on the Alert ListRBI’s caution against unauthorised forex trading platforms (check the RBI website for the latest list).
- Reserve Bank of IndiaLists of authorised persons and authorised electronic trading platforms.
- National Stock Exchange (NSE)Currency derivatives contract specifications and trading hours.
- SEBI Investor WebsiteInvestor education and fraud warnings.
Learn global markets with the right foundation
Online & offline batches · Marathi, Hindi & English
Currency trading involves substantial risk, especially with leverage. This page is for education only and is not investment, legal or tax advice.