A Currency market is a market in which one Currency is traded for another. The Spot exchange rate refers to the prevailing exchange rate at which a Currency can be bought or sold for another. The Forward exchange rate refers to the exchange rate for the future delivery of the underlying Currencies.

What Shows the growth of Emerging Asset Class of India

Volumes have also seen a rising trend in India. Combined volumes in currency futures have increased at a CAGR of 132 per cent from 2009 to 2011 in NSE-CDS exchanges and are expected to grow by more than this rate.

In 2011, dollar has given phenomenal returns of 18.8 per cent against the rupee, which is highest after gold returns.

High leverage is another highlight of this market and even small traders can start participating with relatively low investments.