Forex Trading in the Philippines: Is it Worth the Risk?Posted by Zayne Alvarez on February 7th, 2020 How does forex trading work? Conventional forex trading takes place directly between two parties in an over-the-counter (OTC) market. Meaning there are no compact exchanges like the stock market, and the organized forex market is instead operated by a global network of banks and other organizations. Transactions are scattered across four major forex trading centers in various time zones: London, New York, Sydney, and Tokyo. Since there is no centralized place, you can trade forex 24 hours a day. Most traders venturing on forex prices do not take control of the currency itself. Alternately, traders will make exchange rate forecasts to take benefit of price movements in the market. The most common way of doing this is by trading derivatives, such as a rolling spot forex contract offered by some brokers. Trading derivatives let you venture on an asset’s price movements without taking control of that asset. For example, you can predict the direction in which you think a currency pair’s price will move. The extent to which your prediction is correct determines your profit or loss. The three different kinds of forex market: There are three various forms to trade on the forex market: spot, forward, and future.
If you’re residing in the Philippines and want to venture into forex trading, check our article Is Forex Trading in the Philippines Legal? for suggestions. Like it? Share it! More by this author |