Forex Trading In Philippines: Developing Your Skills For Consistent Profits

Usually forex trading in Philippines has not been popular with sell traders/investors (traders takes shorter term positions than sponsors) because forex market was only opened to evade Funds and was not available to retail traders like us. Only in recent years that forex trading is released to retail traders. Moderately stock trading has been approximately for much longer for retail investors.

Recent advancement in computer and trading technologies has enable low charge and easy admission to retail traders to trade stock or foreign currency exchange from roughly anywhere in the world with internet access. Easy access and low charge has extremely amplified the odds of winning for retail traders, both in stocks and forex. Which of the two is a improved alternative for a trader? The comparisons of retail stock trading and retail forex trading are as follows;

·         Nature of the Implement 

The environment of the items being bought and sell between forex trading and stocks trading are different. In stocks trading, a trader is buying or selling a share in a explicit company in a country. There are many dissimilar stock markets in the world. Many factors conclude the increase or fall of a stock price.

Forex trading in Philippines involves buying or selling of currency pairs. In a business, a trader buys a currency from one country, and sells the currency from a different country. Therefore the term "exchange". The trader is hoping that the value of the currency that he buys will rise with admiration to the value of the currency that he sells. In essence, a forex trader is betting on the financial scene (or at least her economic policy) of one country beside another country.

·         Market Size & Liquidity

Forex market is the main market in the world. With every day dealings of over US$4 trillion, it dwarfs the stock markets. While there are thousands of dissimilar stocks in the stock markets, there are only a few cash pairs in the forex market. Therefore, forex trading is less prone to price organization by big players than stock trading.

Huge market volume also means that the currency pairs benefit from superior liquidity than stocks. A forex trader can enter and exit the advertise easily. Stocks moderately is less liquid, a trader may find problem exiting the market especially during major bad news. This is worse particularly for small-cap stocks. Also due to its enormous liquidity of forex market, forex traders can enjoy better price spread as compared to stock traders.

·         Trading Hours & Its Disadvantage to Retail Stock Traders 

Forex market opens 24-hour while US stock market opens daily from 930am EST to 4pm EST. This means that Forex traders can decide to trade any hours while stock traders are defective to 930am EST to 4pm EST. One important disadvantage of retail stock traders is that the stock markets are only opened to market makers throughout pre-market hours (8:30am - 9:20am EST) and post-market hours (4:30pm - 6:30pm EST).

And it is throughout these pre-market and post-markets hours that most business liberate the income consequences that would have great accident on the stock prices. This means that the retails traders (many of us) could only scrutinize the cost rise or drop during these hours. Besides, stop order would not be advantaged during these times. The forex traders do not familiarity this important irritation. Also, a stock trader may correspond his/her trading with forex trading in Philippines the stock trading hours.

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Created on Mar 23rd 2018 04:49. Viewed 350 times.

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