More than just an online trading platform
Saxo Bank Dubai's online trading platforms enable trading of Forex combined with other asset classes, all from one integrated trading platform. Saxo Bank Dubai provides all the necessary tools and market information to facilitate successful trading.
Saxo Bank Dubai's dedicated Strategy Team analyses markets and supplies frequent updates, providing clients with insights of upcoming news and current trends that increases understanding and profits. Saxo Bank provides clients with access to leading market experts such as Steen Jacobsen and consultant John Hardy, meaning clients are always fully informed about the FX market. Strategy and analysis are supported with frequent, reliable news feeds from sources such as Dow Jones Newswire, Market News International and others.
About the Forex Market
An estimated USD 3.5 trillion is traded in the currency market each day, making it larger than the Stock and Futures markets combined. This level of turnover means that the Forex market is constantly changing, providing traders with many opportunities to create profits independent of the situation in other markets.
What to know when trading Forex
Trade Currency and Price Currency
Investors always trade in the Forex market in a combination of two currencies, known as a cross or currency pair. One currency is bought (long) and the other currency is sold (short), meaning that the investor is relying on the prospect that one of these currencies will appreciate in value compared to the other.
Margin Trading
Margin trading is the buying and selling of assets possessing greater value than the capital in investors' accounts. Forex trading is most commonly executed on margin accounts, and the tendency of currency exchange rate fluctuations to be minor (one or two per cent) leads to trading on relatively small margin amounts.
A certain amount of risk is involved in margin trading, as the position being held exceeds the account's value. This means a trader could potentially incur significant losses in the event that the market moves against their position. It is therefore vital to closely monitor margin utilisation, the amount of collateral that is being used to uphold margined positions.
If there is insufficient collateral available to support margin utilisation, margin trading positions must be either closed or reduced, otherwise additional funds are required to cover the position.