What time forex market open today dubai
This can quickly deplete reserves if not kept in check, and it can burn out even a veteran trader in no time at all. That said, not all trading hours are created equally. In order to make money in the Forex market the smart investor will create a schedule that capitalises on market overlaps, or the time in which more than one market is actively trading. With one market open, currency pairs will form tighter bonds and movement is generally limited to a pip spread of maybe When two markets are open at the same time, the same currency pairs may see pips in spread.
Global news events are a powerful driver of currency valuation. Prioritise these news releases and pay close attention to global interest rate movements, central bank meetings, GDP data from specific nations, consumer confidence releases, trade deficits, and CPI data. These economic indicators can and do influence the valuation of currencies and should be kept on your schedule.
By doing so, the science behind trading in Forex becomes more visible to the trader. Contracts for Difference CFDs and margined FX are leveraged products which carry a high degree of risk to your capital. Prices may move rapidly against you and may result in you losing more than your initial deposit. CFDs and FX may not be suitable for all investors and you should fully understand the risks involved before opening an account.
Thanks to investor confidence and a low yield environment, the foreign exchange industry has evolved from humble beginnings to a trillion dollar industry. A mere ten years ago, forex was in its infancy. Investors were more interested in property investment and hedge funds, but the global financial crisis changed things and investors began to see the benefits of investing in forex.
Forex traders in the GCC are trading in the same sectors as their counterparts in London, New York and Tokyo, but their trading volume is increasingly far more rapidly. The UAE, primarily Dubai, was the first to create the necessary infrastructure for forex trading. Despite the growth of forex trading in the GCC, liquidity problems are casting a long shadow over the region.
Oil prices have proven extremely volatile in recent years, which has had a significant effect on global financial markets. Many of the Gulf States rely on oil revenue to keep the wheels of commerce running, so falling oil prices have affected currency liquidity and exerted extra pressure on currency pegs.
The US government has implemented new regulations designed to reduce money laundering and tax avoidance, which has led to an increase in foreign currency transactional costs. This has had a knock-on effect on USD transactions in the region. Local currencies are currently pegged to the USD, but this has caused problems in recent times.