Currency derivatives are one of the largest markets in the world. Currency derivatives India is also a part of it. It is a very lucrative market and if done properly, one can earn a lot in this trading. Currency trading is basically trading in currency. For example an Indian investor buys some foreign currency, say dollar. He will buy it when the value of dollar is low and will sell it when it is high. For this to happen he has to keep a tap on the fluctuation that happens between a dollar and rupee. He has to known on which day one dollar is equal to how much rupees. If he keeps a vigil on what is happening he can buy and sell the currency at the right time.

Currency derivatives India is also called foreign exchange trading. The prices fluctuate due to two basic reasons. One because the tourists go to certain places and ask for conversion of money. Second, the traders or the brokers speculate a lot and this creates a lot of fluctuation. This is because many people follow what they say and accordingly invest in it.

Derivatives are contracts that have a base on an asset or an index. These derivatives can be anything- currency, shares, stocks, bonds, food grains, mutual funds, livestock or anything else. Derivatives trading India is basically buying or selling the derivatives at a specific place at a specific price.

Derivatives trading India can be done in six types mainly: Swaps, Leaks, Baskets, Swaptions, futures and options. They all are basically some type of contracts. Such type of trading can take place in derivatives exchange India or any special segment hat is included in the stock exchange.

Such trading can also be done online. All you need is an internet connection. Also, you can just sit at home and buy and sell what you like. In many online sites there are tips on how to understand what the price of the derivatives will be. There are also tips for amateurs and beginners who don't know anything about trading. Such people can avail the benefit of online trading.