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online forex trading

Dubai online forex trading

As the UAE is not charging any tax from online forex trading in financial market, the benefits of Forex trading in Dubai are immense. However, many remain skeptical due to the Forex markets’ reputation as risky investments. It’s only the traders’ high leverage trading behavior that results in their losses since the major currency pairs haven’t changed more than 30% in the last 10 years. Due to the fact that every Forex trade is a double sided trade, it is possible to make profits no matter which direction the market is moving in.

With a daily turnover of over $5 trillion dollars (that’s $5,000,000,000,000,000,000), the Foreign Exchange market is the world’s largest financial market. The majority of foreign exchange investors are speculative; without physical delivery of currency, it’s simply numbers that wave around on a computer screen. Your currency traders will also be speculative in nature. So, what is forex exactly? Dubai forex trading involves simultaneously buying one currency and selling it. Each transaction is handled by an intermediary called a broker or dealer. For example, the euro versus the US dollar (EUR / USD), the euro versus the Japanese yen (EUR / JPY), the dollar versus the Australian dollar (USD/AUD), etc.

Dubai online forex trading

Trading forex in Dubai.

In Dubai, forex trading can be a bit confusing since you don’t actually buy anything. 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 this currency; against other currencies is a reflection of the state of its economy in relation to the economies of the other countries. Dubai’s forex market is not based on any particular headquarter, as opposed to other financial markets such as the New York Stock Exchange, London Stock Exchange, Madrid Stock Exchange, or Bursa Malaysia.

The forex market in Dubai is an over the counter (OTC) market; it is an interbank market, meaning that all trades are conducted electronically through a network of banks. The forex market in Dubai operates non-stop for over 5 days a week.

Dubai’s forex market

Forex trading in Dubai has immense advantages due to the fact that UAE does not charge any tax on online forex trading in the financial markets. However, many remain skeptical due to its reputation as a risky investment. The major currency pairs have not changed more than 30% in the last decade; it’s the traders’ high leverage trading behavior that causes them to lose money. Due to the fact that forex trading in Dubai is a double-sided trade, no matter how the market moves, you can profit.