Before you begin, it’s important to understand the risks involved in trading. Trading Forex in the Philippines is a highly volatile investment, requiring ample research and financial planning..
Forex is a global marketplace where currencies are bought and sold. There are three types of Forex markets: spot, forward and futures. It’s important to choose the right broker, such as VT Markets Philippines, with a reliable platform and low spreads. Develop a financial plan, manage your risk, and continue your education through attending currency trading courses, reading books and following industry experts. Below is an ultimate guide to Forex Trading for beginners in the Philippines who are keen to learn more.
What is Forex?
Just like how people exchange money when they travel but Forex is on a much larger scale for countries and businesses. Thus, prices of currencies constantly go up and down, where traders potentially earn or lose through market price movements. It’s like a big game of strategy where people analyze the news, economic data, and charts to make their moves. So, in essence, Forex is like a giant, constantly-moving chess board where people can potentially make money by making the right moves.
Here are the types of Forex Markets:
Spot Forex Trading
This is the most common market whereby the currencies are bought and sold immediately. Hence, potential earning will be based on the exchange rates against parties.
Forward Forex Trading
This involves the buying or selling of a currency pair for a future delivery date at a predetermined price.
Futures Forex Trading
Trading of futures contracts for the buying or selling of a currency pair at a future date and at a predetermined price.
Here are some points that you should take note:
24 hours, 5 days trading
The market for forex is unique as it opens 5 days a week 24 hours a day. Therefore, it is important for beginners to know when is the active timings to trade.
Leverage
Leverage allows traders to control larger positions with smaller capitals. For example, with a leverage of 1:100, traders can long or short a currency pair with $100 but control a $10,000 position. However, traders need to know how to use leverages wisely as it can potentially result to big gains and huge losses.
Spreads
Spreads refer to the difference between the asking prices and selling prices for currency pairs set by brokers. Spreads can be narrow or wide depending on factors like the volatility of the currency pair, the size of the trade and the provider involved. Since spreads play a significant factor in determining your profit margin, it is important to find a reliable platform with low spreads to increase the potential profits.
Take-profits and stop-loss
It is extremely important to set take profits and stop loss for beginners. Take profit and stop loss is a function in a Forex platform to help beginners stay discipline to their game plans.
Pips
Pips are an essential unit of measurement used to indicate the long or short movement of a currency pair. Hence, understanding pips is crucial for beginners, as it helps in calculating potential profits and losses in Forex trading.
Choosing the right broker
Choosing the reliable Forex broker is important as it will determine the possible outcome of the trades. Therefore, you should consider a Forex Broker like VT Markets Philippines. Not only we provide ultra-low trading spreads, our platform support is of highest standards available. Additionally, we have more than 1000 instruments you can choose from.
Develop a trading plan
A trading plan is a set of guidelines that you follow when making trades. It should include your entry and exit points, stop loss levels, and risk management strategies.
Manage your risk
Trading Forex involves risk, so it’s important to have a risk management strategy in place. This includes setting stop loss levels and only risking a small percentage of your trading account on each trade.
Education
As Forex market is constantly evolving, so it’s important to keep learning and developing your skills. Attending currency trading courses, reading book and follow the experts in the industry is a good way to keep yourself updated.
With the above guide, you can start your journey of Forex trading confidently. However, we recommend all beginners to test out and familiarize with a demo account first. Remember to always do your own research before and never risk more than what you can afford to lose.
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