Forex

Online forex trading education franchise

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.