Forex Trading in Philippines
Although forex trading has still not gained widespread attention in the Philippines, as has the equity markets and index funds, it is still a viable choice for diversifying your financial portfolio. Although forex trading is not yet widely practiced in the country, it is beginning to acquire popularity due to the numerous forex trading platforms that are now available. Continue reading to learn about forex trading Philippines and why it may be a profitable endeavor.
What is forex trading?
Unlike stock markets, which can trace their roots back centuries, the forex market as we know it today is a very new sector. Forex has existed in one form since countries started stamping monetary papers, namely, individuals exchanging one currency for another to gain a financial advantage. In any case, advanced forex markets are a cutting-edge expansion. Following the Bretton Woods agreement in 1971, more significant currencies were offered the chance to float freely against one another.
Individual monetary types have different estimates, which has led to the need for the forex market and trade. Investment and commercial financial institutions control the great majority of forex markets exchanged for their customers. There are also speculative opportunities for seasoned and independent speculators to exchange currencies.
Types of forex trading
When it comes to foreign exchange markets, there are three significant sorts that you should be familiar with before you begin forex trading in the Philippines.
- Spot market
When you exchange money physically, you exchange a currency pair that takes place "on the spot" and in a short amount of time.
- Forward market
When purchasing or selling a certain currency at a particular price in the forward forex market, a contract is entered into by both parties. The transaction is completed at a certain date in the future or at a range of dates in the future.
- Future market
When buyers and sellers agree to buy or sell a specified quantity of a currency at a particular date (in the future) and price, they are said to have entered into a contract. Contracts in the future market are legally binding, in contrast to forwarding FX contracts.
Forex Trading in the Philippines:
According to the International Monetary Fund, the Philippine peso is the Philippines' national currency and is ranked 30th in the world's currency market among all currencies. USD/PHP trade rates are currently quoted at 50.75 PHP to 1 USD at the time of writing.
So if you want to do forex trading in the Philippines, you have to follow specific strategies, such as day exchange, trend exchange, swing exchange, news exchange, and scalping.
Forex trading in the Philippines is a pretty simple process. To get started, simply follow these steps:
Step1: Look for a forex broker that accepts Philippine traders.
Step 2: Open a brokerage account with the company. Make sure that your account is funded. The majority of online brokers accept funds through online payment systems.
Step 3: If your preferred broker offers a mobile application, consider downloading it to do FX trading throughout the day.
Step 4: Make your initial trade as soon as possible.