Have you ever traveled overseas? If so, you have already made a forex trading transaction. When you do a forex trading transaction, the forex exchange rate between two currencies will be based on supply and demand. Say you traveled to Thailand, you will convert your dollars into baht, that is already part of forex trading Thailand. The exchange rate between these two currencies is dependent on the supply and demand which will in turn determine how many Bahts you get for your dollars.
In the trade of forex, the exchange rate fluctuates continuously. One dollar on Thursday could be exchanged for 31 baht and on Tuesday, 40 baht. On a bigger scale, this change and fluctuation is a big deal. If you are a traveler it may be in your best interest to wait on your travel until the forex exchange rate is lower so it will be favorable to your travel. This discrepancy is crucial to big international companies that invest in foreign countries. Paying overseas employees comes in constant dates therefore these companies could not avoid the inevitable fluctuation of the exchange rate.
Forex is somehow like stock exchange, you trade currency based on its value and how long it is going to stay at the rate that is profitable for you. Timing is key in currency trading. Predicting if a currency will increase in value will give you an advantage in buying currency while it is at low just before it rises. You can also sell currency if you predict that the value of the currency is depreciating. Forex trading is a big market and it is easy to find buyers and sellers alike.
In forex trading Thailand you could make a forex trade by selling the baht currency against another currency, say, the us dollar. If the Thai baht lowers its value against the US dollar the higher your profits. But if the Thai baht suddenly shoots up in its value while you are selling, then it counts as a loss.
Thailand’s growing economy makes it ideal and encourages investors to trade in its forex market. International forex brokerages even offer websites and trading platforms for forex trading Thailand.
What sets apart Thailand from other developing countries that do forex trading is that the Thai financial system is still in its early stages of development and regulated by the bank of Thailand and the Thai sec.
Another difference of forex trading Thailand is it has some restrictions and one should take note of the local policies and regulations before trading.
In 2017, the bank of Thailand began reforming its forex trade regulations. The central bank aims to allow the private sector to conduct forex trading transactions at their internal risk management and based on the framework set by the bank of Thailand. They aim to encourage individuals and institutions to engage in forex trading and strengthen the economy’s market of foreign exchange.
The Bank of Thailand issues a forex license for commercial banks and juristic persons authorized to transact with foreign means of payment. There is no additional regulatory board other than the Thai licensing process.