I am sure you already heard about currency trading which 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.

That is how basically FOREX trading works but to tell you the truth I am still confused with the way how you trade specially on what position you are in and with currencies I am not familiar with. 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 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. With these we can actually make money whether the exchange rate is going up or down as long as we take the right position. That is why we cans still apply our technical and fundamental analysis to determine the direction of the currency pairs trend and thus make profit.

Go to the internet and research about forex trading. Also check out our sponsor, WorldWideMarket. They are a financial services technology firm which provides online trading and risk management solutions for Spot Forex , Gold, Oil, equity indices and other CFD instruments.

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Louis Delos Angeles is a Certified Public Accountant, blogger behind Investing in Philippines, and author of Investing in Stocks: Preparing for the future small amount at a time. 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. In our example when the US economy weakens the USD — PHP rate goes dow thus we need a fewer number of Peso to buy the Dollar. The USD — Peso rate goes up when US economy strengthens because people think such economy will go on and thus they are willing to buy Dollar as storage of value.

When such demand keeps on going the need to increase the rate in order to force people to sell their dollars so that buyers can store the value they are expecting in the future. 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.

I understand that there are a few things that needs to comply before you start trading.

A How-To Guide for Trading Forex in PH | eqogypacuc.web.fc2.com

But how sure that my investment fund is safe once I send this to the forex market institution. Can you give me a little background on how I can trace my funding flows upon sending it t the Forex market. Hi I wanted to learn more about Forex trading and it seems that there are less articles about this topic unlike with stocks or other investments.

I hope to find some more information about FX,. I have no experience with this kind of investment and I am afraid to do money transactions over the internet cause of possible scams. I would like to learn more about this and I would really love to see my hard earned money grow.

Can you help me get started?

Apologies for not replying to your message. FX trading is done mostly online and in the Philippines these are not covered by our laws since FX trading involves a wider investing community. Internationally there are accreditations of FX brokers.

You have to really choose one that you can trust. IN the Philippines there are groups that help in facilitating learning FX trading.

You can search for PAFTI in the FB groups and also some trading private groups in FB for discussions. I hope this helps David. Again this is a highly volatile market and investing in these involves high risk so be aware of the disclaimers. Dont invest if you are yourself not educated and prepared enough to do trades. You can check out some simulated platforms and do attend seminar or live trainings to fully grasp this.

Then practice using the training modules that use live trading data to get you familiarize on the speedy trading n forex.

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Thanks for the email. I will make sure to learn everything I will need for effective trading. I would like to learn more about this kind of investment and how can I start. I have been trading for average 2 years now, I can not say it is easy but I can say its worth it just keep working hard and seek for improvement every day, discipline is the key. The Gridiculous Theme by bavotasan.

Bank Products , Broker , FUNdamental , Other investments , Personal Finance , TECHnical What is FX or Forex Trading? About the blogger Louis Delos Angeles is a Certified Public Accountant, blogger behind Investing in Philippines, and author of Investing in Stocks: Please consider leaving a comment , subscribing to the RSS feed , or join our email list.

Does having large amount of money means your rich? I hope I have answered your question Ruperto. Great to know that there is a huge interest in Forex Trading here in the Philippines! Do leave a comment if you are interested. Louis Delos Angeles, CPA. Hi David, Apologies for not replying to your message.

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