Forex Trading in Dubai-تداول العملات في دبي

December 6th, 2014

Currency trading in Dubaiتداول العملات في دبي

is  a part time income for some of Dubai young residents. Many trade currency during their job. Online currency trading is becoming a part time business in Dubai for some.

Currency trading can be very risky. It is very volatile market as compare to other financial markets. The base line for Forex or currency trading is to manage your risk line, which should include your strategy and proper planning.

Some Cautions before you start Online Currency Trading in Dubai

 

New comers please educate your self and investigate Brokers before you jump with it. Here are some points to check

 

  • Regulated Forex broker
  • Low Spread
  • Regulated by DFSA (Dubai FSA License)

Please send us an email if you wish to ask about a certain Broker, we might be able to give you a list (WE ARE NOT AFFILIATED WITH ANY OF DUBAI FOREX BROKERS.)

 Before you start trading with any Forex broker in Dubai, find out if they are regulated by FSA UK and from DFSA. If you are new to online currency trading in Dubai, even they will help you to initiate your first online trade.

 

Advantages of Currency trading

 

Market Liquidity and Volatility

  • The forex market is the largest and most liquid of the financial markets.

Market Hours and Liquidity

  • Forex trading operates 24 hours a day, five days a week. The greatest liquidity

Low Cost of Forex Trading

  • The cost to trade with most forex brokers is the spread. This is the difference between the bid and the ask price.
  • Spreads in the forex market also tend to be much less (or tighter) than the spreads applied to other securities such as stocks.

Advantages of Margin-Based Trading

  • Most OTC forex brokers offer margin-based trading accounts.
  • Margin-based accounts differ from credit-based accounts in that when trading in a margin account, you must first open an account with your broker, and then fund the account by depositing money into the account.
  • Once you have funded a margin account with your broker, you can engage in any trading activity you wish so long as you have sufficient margin remaining in your account.
  • Leverage makes it possible for you to trade larger positions than would otherwise be possible based on your actual account balance.
  • The downside of course is that there is also greater potential to lose money and you can incur significant losses in your account very quickly.

Profit Regardless of Market Direction

  • A short sale – or simply a short – is the selling of a currency pair before you buy it.
  • It is very easy to enter into a short sale when trading in the forex market.
  • In order to make a profit on a short, you must buy the currency back for less than you received when you sold it. The difference represents your profit or loss.
  • The ability to engage in short selling means that it is possible for you to profit no matter which way the market is trending.
  • When rates are increasing, you can earn a profit if you buy (go long) a currency pair, and then sell it later for more than you paid.
  • When rates are falling, you can earn a profit if you sell (go short) a currency pair, and then buy it later for less than you earned when you originally shorted the currency pair.

By: Adma Dababneh

 

 

Trading forex risk disclaimer

Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.