Beginners Guide of Forex Trading in the Philippines

Jun 26
06:31

2012

ali robertson

ali robertson

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Forex is the largest financial market in the world. If you are a Filipino and want to learn about forex, This article will give you a brief and concise details about forex trading.

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May Filipinos are not exactly aware of the benefits that Foreign Exchange (Forex) as an online business. Some think that it takes an economist and mathematician’s skills in order to take part in currency trading. But,Beginners Guide of Forex Trading in the Philippines Articles with the dawn of technology, it becomes easier for everyone to join forex.So, what is Forex?Forex, also known as FX, Spot FX or Retail Forex, it’s the largest financial market in the world. While currencies are traded simultaneously through buying and selling, it has $4 trillion volume of trades per day compared to $25 billion of New York Stock Exchange (NYSE) trades.Actually, many Filipinos are experiencing forex on a daily basis. When you’re parents, brother, sister, uncle, aunt and even your grandparents from abroad sends you some money, let’s say dollars, you need to exchange it in Peso so you can use it in the country. Even when you travel overseas, you need to trade your Peso to that country’s currency so you can have the money to spend. Then you realize that they don’t have equal value, now by these examples, you have a clearer idea about forex.Currency The value of a certain currency depends on what the forex market think about its country’s economic stability, in present and in the future. When you buy a certain currency, saying it’s US Dollar (USD), you are hoping that the US economy will be stronger so when that time comes, its currency value is higher giving you profits. However, remember that when you’re buying a currency, you are also selling another. In forex, currencies are traded in pairs. For example, USD and euro (USD/EUR) or British Pound and Japanese Yen (GBP/JPY). They are the usual and major currency pairs being traded in the market.How it takes place?Unlike NYSE, Forex has no definite location. It’s not that they are hiding because they are completely legal. It has not physical location since it’s considers as an Over-the-Counter (OTC) market since the whole market is being run electronically from network of banks daily by many individuals and groups.So wherever and whenever, you can participate in forex trading in the Philippines and all over the world even if you’re in the surfing in Ilocos, chit-chatting with Aling Baby or sitting at your sala in the very comfort of your own home with your computer and internet. There are many ways to trade in forex. There are Exchange-traded Funds (ETF), spot market, futures and options among others.  In starting with forex, you need to have a trading account from a reputable online forex broker. This broker will give you trading platforms such as Meta Trader 4 where you not only trade but also see latest market movements as well as charts so you have the right information during trading.