Forex trading is a method of making money from the foreign exchange market. It is done by exchanging one type of currency for another and then selling it at a profit.
Forex trading takes place in Dubai through brokers who work for their clients. They provide traders with an online platform to buy and sell currencies on the international market. Traders can see how much profit or loss they have made as their broker will provide the real-time rate, giving them extensive information about what is happening globally regarding foreign exchange rates.
Up to 40 different fiat currencies are being traded at any given time. Still, since the US dollar plays such a prominent role as a reserve currency, most companies will quote prices in US dollars first and foremost.
What platforms are used for forex trading in Dubai?
The most popular platform for forex trading in Dubai is MT4, developed by MetaQuotes Software Corp. It is used by more than half of the available brokers and has been very successful due to its user-friendliness. The platform looks very modern, and it offers helpful information.
During session overlap times , educate yourself on the best time to trade the forex markets.
You can easily switch from one currency to another to see how they are performing without having access to all the details behind each currency’s value – this makes it easier for regular traders who want an overview. A great deal of support is also offered through phone, email or live chat, making it even more convenient as you can quickly get problems solved if something isn’t working correctly with your account.
It’s effortless to open an MT4 account and get started, especially since they offer a free demo version.
Another platform used by forex brokers in Dubai is cTrader. It has also been very user-friendly, and you can set up an account quite easily. It offers a great deal of flexibility with multi-device compatibility. If traders want to access their accounts from different devices, they can do so without problems.
The layout is more modern than MT4, and it allows more overall control, so some traders may prefer using this over the former option. Still, there have been complaints about the customer service being slow or unresponsive, which you never want when trading FX on your own.
How does forex trading work?
Forex trading is relatively straightforward, but it will require a certain amount of education before you can fully understand what is required. Brokers provide their clients with an online platform that allows the trader to see how much profit or loss they have made and see the real-time rate. They have access to the extensive information about what is happening globally regarding foreign exchange rates.
Traders can also choose from two types of trade – either ‘going long’ or ‘going short’. A long trade refers to purchasing an asset with the expectation that its value will rise in the future. The opposite is valid for a short trade, where traders sell an asset to repurchase it later when its value has dropped so they can profit from the sale.
To get started, you need to pay funds into your account via bank transfer or credit card payment and then you are free to start trading on your chosen platform. Since FX trading isn’t bound by any specific time of day, most people who work from home can be selective about their active hours. There is no set way of making money on forex trading in Dubai. Instead, you have to find out which strategy works best for you.
The longer traders are prepared to hold an asset, the more they can potentially profit. This type of trading is sometimes referred to as ‘swing trading’ and requires patience and emotional discipline. A good tip for forex beginners is to practice using a demo account until you feel confident enough to switch over to a real-time environment where you will be making decisions with your own money.
Forex trading has become very popular worldwide because it makes it possible for people who don’t work in finance or have any experience to make money from buying and selling currencies at different rates. If you think this might suit your skills and personality, then setting up an FX trading account in Dubai could be what you need to start achieving financial freedom.
You can read more here.