Forex, also known as foreign exchange is a little like trading in stocks and shares, but you are dealing with various different currencies, rather than companies. If you’ve ever bought a foreign currency for a holiday, then you have unwittingly made your first move into the Forex world.
Just like when you go on holiday and want to buy something, you have to do it in the local currency. So do businesses. That’s why the Forex markets are the largest in the world. A big part of this is because companies have to exchange currency to go about their business in other countries, just like when you go on holiday. Online forex trading in the UAE via Mashreq Neo will give you access to all these currencies and more!
Trading on Forex differs a little from buying currency to purchase goods. It’s being bought speculatively with the aim to get profit.
The Forex market trumps all the stock markets combined by many multiples. But what are the advantages for traders? The primary benefit is that traders will always be able to execute on a trade which isn’t still the case on low liquidity markets, for example, a company listed on a minor exchange. Being able to enter and exit a trade exactly when you want is a huge advantage.
Because forex can be transacted over the counter, it means trading can go on all around the world during the business hours and trading sessions of different countries meaning traders can trade 24 hours a day!
As the market has few restrictions on trading, you can enter, exit or modify your trade at your convenience. Whereas with trading futures or equities, you can only trade during certain hours of the day.
Here’s a few terms you need to familiarise yourself with.
Sell rate – this is the price or rate at which you will be sold foreign currency in exchange for another currency.
Buy rate – this is the rate at which Mashreq Neo will repurchase foreign currency from you for another currency.
Spot rate – this is the ‘interbank’ rate. The ‘interbank’ rate has you guessed it. The rate at which banks, online forex brokers, and large financial institutions charge one another. A bit like how in retail where shops buy wholesale for less than the price you get when you go to the shop. The banks pay less also as they’re buying large sums.
Spread – The spread is the difference between the buy and sell price.
Mashreq Neo makes all this easy with its advanced and intuitive features, and because of its seamless integration between forex, your current account, savings account, stock and gold accounts, moving your money into a position on the market can be done with ease and without any delay from transferring money
● One-click setup
● Live FX rates
● Competitive purchase price
● Buy Forex online from an online Forex broker
● Convert your Forex to cash whenever and wherever you want
Disclaimer: This article has been prepared solely for information purposes. It does not constitute an investment advice, solicitation, offer or personal recommendation by Mashreq, or any of their related parties to buy or sell any securities, product, service or investment or to engage in or refrain from engaging in any transaction, particularly, in any jurisdiction where such an offer or solicitation would be illegal. Neither Mashreq nor any of their related parties warrant the accuracy of the information provided herein and views expressed in this article reflect the personal view which does not take into account of individual clients’ objectives, financial situations or needs. Investors are required to undertake their own assessment and seek appropriate financial, legal, tax and regulatory advice to determine whether such investment is appropriate for them in light of their experience, objectives, financial resources and other relevant circumstances. Neither Mashreq nor any of their related parties accept any liability whatsoever for any direct, indirect, consequential or other loss arising from this article and/or further communication in relation thereto. Mashreq do not accept any obligation to correct or update the information in this article.