Let’s explore the 3 different assets, including currency pairs, commodities, & indices, that can be used by forex traders in the Philippines to earn profits.
Forex trading in the Philippines is a profitable activity due to various reasons. The country has become an emerging nation as a popular Southeast Asian country. It has gained tremendous popularity with a growing number of traders interested in forex trading who are looking forward to earning profits from the global currency market. The Securities and Exchange Commission in the Philippines has taken an adversarial step against trading foreign currencies due to the heavy losses and fraud cases faced by retail traders.
However, Philippines traders still continued to trade forex and made profits by trading in different assets with the best forex broker present in the Philippines market. This guide will explore the top 3 financial assets for Philippines traders, including the range of commodities, indices, and currency pairs available in the Philippines trade market.
Currency pairs are the most popular financial asset for trading forex in the Philippines. A currency pair is a quotation of two currencies – the base and quote currencies. Currency pairs show the value of a currency quoted against another – the base/quote currency. Trading currency pairs in the Philippines is done in the forex market, which is the most liquid and largest financial market in the world.
The most widely traded currency pairs in the Philippines include the US dollar/Philippine peso (USD/PHP) and Euro/Philippine peso (EUR/PHB). Philippines traders can use these currency pairs in order to make profits from the volatile nature of the currency or exchange rates. Note that every country has major (USD/JPY, EUR/USD, and USD/CAD), minor (EUR/GBP, EUR/CHF, and GBP/JPY), and exotic (USD/SGD) currency pairs that differ in terms of liquidity and spread.
Range of Commodities
The Philippines is also known for offering a wide range of commodities and their forex trading market. The best forex broker Philippines offers popular commodity assets like physical goods, including oil, agricultural products, and gold, that are widely traded in the global financial markets. Commodities have intrinsic value, the prices of which are dictated by the principles of demand and supply.
The Philippine forex market offers commodities that are used in the form of a hedge against the fluctuations in currencies, thereby providing traders with an opportunity to benefit from market volatility. There are different types of commodities traded in the Philippines, including agricultural goods like pulses, sugar, rice, cocoa, spices, and cotton. Metals, like gold, platinum, and silver, and energy goods, like oils and natural gas.
Indices Offered by the Forex Market
Indices or index trading is quite a popular financial asset in the global trading market, where traders can use the best forex broker to trade in individual companies’ stocks, commodities, bonds, and other financial assets directly. Many Philippines traders begin their journey with index trading by trading a basket of shares instead of buying or selling individual company stocks. Indices represent the overall performance of a particular financial market.
Indices are mostly managed by committees that regularly review index rules and determine whether to remove or add more company shares. However, the most popular and widely traded indices in the Philippines are PSEi (the Philippines Stock Exchange Index) and Japan’s Nikkei 225. The best Philippine forex brokers provide a variety of indices for the country’s forex traders to benefit from the fluctuations taking place in the financial stock markets of countries around the world.
During trading currency pairs, indices, and commodities in the Philippines, traders must learn to determine the volatility of the market that works best with their style of trading. Forex trading in the Philippines offers a variety of financial assets, including indices, commodities, and currency pairs. The assets offer unique opportunities, including risks and rewards that traders must carefully consider based on their level of risk tolerance and trading strategies.
With proper understanding, knowledge, and financial tools, forex traders in the Philippines can take part in the global financial markets to achieve success and profit from the activity. However, it must be noted that traders must carry out their own research before pouring large sums of money into the Philippines’ financial market.