FOREX stays for Foreign Exchange. The Foreign Exchange market is the largest financial market in the world; with a day-to-day turnover of over $5 trillion dollars (that’s a whopping $5,000,000,000,000!). Almost all forex investors are of speculative nature; without physical delivery of currency, it’s basically numbers wavering around on computer screens. Chances are your currency traders will be of the speculative kind, as well. Thereby, what is forex exactly? Forex trading in Dubai is the simultaneous purchasing of one currency and selling of another. Each deal goes through intermediaries called brokers or dealers. Currencies are traded in pairs, for example euro vs. US dollar (EUR / USD), Euro vs. Japanese yen (EUR / JPY), US dollar vs. Australian dollar (USD/AUD) and so on and so forth.
Forex trading in Dubai
Since you are not buying anything physical really, forex trading in Dubai can be somewhat confusing. So, imagine that when you buy a currency; it is like you are buying a piece of a country as the rate of exchange of a given currency; against the other currencies is a reflection of the state of the economy of this given country; in comparison with the economies of the other countries. As opposed to other financial markets such as; for example, the New York Stock Exchange, the London Stock Exchange, Bolsa de Madrid or Bursa Malaysia; the forex market in Dubai is not base in any particular head quarters.
It does not have particular central exchange. The forex market in Dubai is an over the counter (OTC) markets; an inter bank market, meaning that all the trade are done electronically in a network of banks. The forex market in Dubai “is open” non-stop for over 5 days a week.
Forex market in Dubai
As UAE is not charging any tax from online trading in financial market; the benefits of forex trading in Dubai are immense. However, many still remain doubtful due to the Forex market in Dubai reputation as a risky endeavor. In reality, the major currency pairs have not change more than 30% in the last 10 years; and it is only the high leverage trading behavior of the traders themselves that lead to their loss. In fact, since every forex trading in Dubai is a double sided trade; it is possible to make profits no matter which way the market is moving.
Forex trading in Dubai
In terms of its trading volume, the foreign exchange market (forex, FX, or currency market); is a global regional market place and by far the largest financial market in the world. The foreign exchange market does not decide the relative values of different currencies; but sets the present market rate of the value of one currency vis a vis another. Statistics reveal that an estimated $5.3 trillion worth of currencies change hands every day.
Unlike most financial markets; the OTC (over the counter) foreign exchange market has no physical location; or central exchange as well as trade 24 hours a day through a world wide network of businesses; banks as well as individuals. This means that currency prices are continuously fluctuating in value against each other; so offering multiple trading opportunities.
The most intimate type of forex trading in Dubai is spot trading. It is a simple buying of one currency using another currency. You habitually receive the foreign currency immediately. It is similar to exchanging currency for a journey. It is a contract between the trader and the market maker, or broker. The trader purchases a particular currency at the buy price; that is from the market maker and sells a different currency at the selling price. Always the buy price is slightly higher than the selling price. The difference between buy and sell is called the “spread”. This is the transaction cost to the trader; which in turn the profit is made by the market maker.
You pay spread without realizing it once you exchanged your dollars for euros. You would observe it if you made the transaction; canceled your trip and then tried to exchange the euros back to dollars right away. You wouldn’t get the same price of dollars back.
Trade Forex and CFDs with us:
Trade forex and CFDs on stock indices, commodities, stocks; metals and energies with Accuindex. For all clients who open their real account; forex trade in Dubai offers a free commission as well as free swap platform; tightened spread, 1:400 leverage facilities. So at forex trade in Dubai, you can speculate on the future direction of currencies; taking either a long or short position depending on; whether you think the currency’s value will go up or down.