I am sure you already heard about currency trading forex delhi is more popularly called Foreign Exchange Trading or FOREX or FX for short. Basically Forex Trading is the trading of two currencies. In the Philippines and for OFWs I guess the best well known currency we are handling is the US Dollar and the Philippine Peso. What do we do when the value of US Dollar against the Philippine Peso fluctuates?
When the exchange rate goes up, meaning we need more Peso to buy the Dollar, we exchange or sell our dollar taking advantage of the additional number of Peso we can acquire for the same Dollar. Now on the other hand when exchange rate goes down, meaning we need fewer Peso to buy the Dollar, we buy the Dollar taking advantage of able to buy Dollar cheap. We are currently testing the service using a practice account and the review and opinions stated are based on the on going review of the service. But here is a guide I found out in the internet. To profit in the FOREX Market we got to buy when the exchange rate is going up and we have to sell when the exchange rate is going down. Before I explain this further let us understand some stuff about FOREX trading.
In the stock market we trade a single stock or in the case of an ETF a basket of stocks but in the FOREX market we trade a currency pair. Currency pair has three parts namely base currency, counter currency, and the exchange rate. This means that 1 USD is equivalent to 43. Now going back to our analysis when the USD-PHP exchange rate goes up from 42 to 43 the action we will make is to exchange our dollars to peso thus we are actually buying Peso by selling our Dollars and in the process we profited 1 Peso per dollar. Now on the other hand when the exchange rate goes down from 43 to 42 we will exchange our peso thus actually buying dollar by selling Peso and saves us 1 peso per dollar which is technically a profit.
Go to the internet and research about forex trading. Spot Forex, Gold, Oil, equity indices and other CFD instruments. Please consider leaving a comment , subscribing to the RSS feed, or join our email list . Beyond Debt-free: Does having large amount of money means your rich? What is FX or Forex Trading?
My question is, why does a certain currency fluctuate or appreciate against versus another currency, what causes it to move upward or downward? Well just like stocks or any commodity the price fluctuates primarily due to the supply-demand relationship. A demand for a certain currency rises when people think its value as reflected in country of that currency’s economy is strengthening. PHP rate goes dow thus we need a fewer number of Peso to buy the Dollar. I hope I have answered your question Ruperto.
Investing in online trading is a great alternative to achieve good profits, online forex trading business is very effective if you have knowledge and tools to operate. There’s have of the best online free stock watch for you available . I’ve been wondering how the fund investment flows in the Forex Market. I’m a little bit familiar in Forex trading since I’ve attended few seminars on this.
But my concern and worries is how’s my fund investment flows before I start the Forex Trading. I understand that there are a few things that needs to comply before you start trading. But how sure that my investment fund is safe once I send this to the forex market institution. Great to know that there is a huge interest in Forex Trading here in the Philippines! I’d like to help you get started in Forex Trading.