Monday, August 13, 2012

Dubai Currency history

In 1973, the U.A.E. Currency Board introduced notes in denominations of 1, 5, 10, 50, 100 and 1000 dirham. A second series of note was introduced in 1982 which omitted the 1 and 1000 dirham notes. 500 dirham notes were introduced in 1983, followed by 200 dirham in 1989. 1000 dirham notes were reintroduced in 2000. Banknotes are currently available in denominations of 5 (brown), 10 (green), 20 (light blue), 50 (purple), 100 (pink), 200 (green/brown), 500 (navy blue) and 1000 (greenish blue) dirham.
The obverse texts are written in Arabic with numbers in Eastern Arabic numerals; the reverse texts are in English with numbers in Hindu Arabic numerals. The 200 dirham denomination is scarce as it was only produced in 1989; any circulating today come from bank stocks.
Historically, Dirham has been very important in the Middle East because it was the main form of exchange for a very long time. The word is derived from "drachm" ancient Greek coin. The modern Dirham of UAE gained prominence after the discovery of oil in this region. Before the formation of UAE in 1972, Indian Rupee and Gulf Rupee were commonly used in Dubai and other parts of the region. The currency is issued by the United Arab Central Bank and it has been pegged with the U.S.Dollars at 1 US Dollar = 3.67 AED, which has remained constant since about 28 years.
AED (A.E.D.) is the ISO 4217 code for United Arab Emirates Dirhams. Dirham's Numeric code is 784. The UAE Dirham came into operation in 1973 when it replaced the Qatar and Dubai Riyals.
However, people in UAE prefer to write the unofficial abbreviation of Dhs. or DH. Hindi/Urdu/Gujarati speaking expatriates from India/Pakistan also refer to the Dirham as "Rupiya" (Rupee / Rupees) or "Paisa", which is not only the currency in India and Pakistan but also the generic name for money. It is not uncommon to hear a local Arab asking an expatriate vendor "Kitna Rupiya" or "Kitna Paisa".

The Dirhams is divided into 100 fils. "Fils" is a singular form whereas "Fuloos" is the plural, which is also the Arabic for money.
The coins currently in use in UAE are 25-Fils, 50-Fils and 1-Dirham whereas lesser denomination are not in common use, viz. 1, 5 & 10 Fils.
Fils is not only the subdivision of UAE Dirham but also the subdivision of Bahraini Dinars, Iraqi Dinars, Kuwaiti Dinars which are 1000 Fils in a Dinar and Yemeni Rials which are 100 Fils for a Rial.The AED is available in a total of 8 different denominations viz. 1000, 500, 200, 100, 50, 20, 10 & 5 Dirhams. The notes are printed on one side in Arabic and on the other side in Engish. The 200 Dirham note were last printed in 1989 and now are rarely found in circulation.

Understanding forex forecast Dubai Forex

Market players in the Dubai Forex market should not only give importance to the past and present transactions, they should also give a considerable amount of attention to the future possibilities of their business. For this reason, you’ll find that there are a number of websites offering foreign exchange forecasts. Nonetheless, an efficient Forex trader should not rely on one or two predictions. Successfully trading in the Forex market, whether you’re investing from Dubai or elsewhere, involves evaluating the different information you get from various sources.

What is Forex Forecasting?

A Forex forecast is typically a product of the definitive research which would show you in advance the conditions that will take place at a certain future date. However, it is important to know that predictions are just what they are – predictions, and does not guarantee that they will actually happen. There are several factors that come into play when forecasting live Forex rates but even so, it is possible to consistently project currency prices within a range of acceptable margin of error.
Forex forecasts consists of high and low currency predictions, including daily and weekly time frames through advanced trading technology as well as the market experiences of Forex experts. In addition to that, there are also numerous Forex trading tools around the Internet that provides Forex predictions of price movements. These tools are also used for trading other security investments. Most Forex forecasting tools in the market today generate standard trading tools like RSI, Fibonacci levels, Stochastic and Moving Averages.
Day traders often use daily high/low forecasts as a guide for entry and exit points. Position traders; on the other hand, utilizes the daily/weekly predictions for stop losses and trailing stops to follow the best Forex signals. Position traders use the weekly predictions when choosing trading opportunities that offer the most reward in conjunction with the trading signals.

Methods in Forex Forecasting

Dubai Forex traders depend heavily on fundamental analysis to analyze the current trend as well as predict future price movements. The facts and data that they come up with are used to forecast the direction of the economy as well as the UAE stock market and how these would impact the currencies. 
The two major methods used in analyzing the currencies are the Fundamental Analysis and Technical Analysis. Each of these is different from another but serve a common purpose and that is predicting the currency movements. In a nutshell, technical analysis deals on the past performances as indicated by charts and graphs while fundamental analysis is based on events that have occurred in the past. This type of analysis takes into account different environment factors like political changes and natural disasters among many others. 

How Forex rates are influenced ? Dubai Forex rates

The Forex market is a complex mechanism that is based upon various factors that can impact the success or failure of a specific trade. This article will take a look at some of the influences that can affect daily Forex rates. If you’re new to Forex, don’t make another move without understanding these Forex basics. And if you’ve been trading for a while, you may want to remind yourself of what influences are out there in case any of them have fallen off your radar. 

Market Differences

Many traders regard Forex as a large melting pot for current international developments because no other institution responds to them so quickly and appropriately as this market does. In addition, Forex exhibits a number of significant differences from other markets, such as the stock market. For instance, Forex trading is not conducted at a centralized exchange that displays daily Forex rates. Instead, all its transactions are undertaken by using either the OTC (over the counter) via phone, electronic networks or the Interbank Market. 

Speculation Sector

You will find that there are two main sources that produce the gigantic daily Forex turnover of about $3 trillion. The speculation sector accounts for ninety-five 95% of all Forex transactions, which are conducted for pure profit only. This element, which includes investment funds, large banks, corporations and individuals, generates artificial rate exposure using the Forex daily rates in order to produce profits from the movements of price.

Consequently, you may be surprised to find out that the majority of Forex trading is of a speculative nature only. In fact, the currency conversion needs of governments and businesses generate only a small percentage of the overall Forex activity.

Foreign Sector

The foreign sector is responsible for the other 5% and is produced by international businesses selling and purchasing their materials and products overseas as well as converting their currency needs. This section of traders includes companies (exporters and importers), governments and other investors who require foreign currency conversions.

The business performance of these organizations can be directly influenced by the oscillating movements of their domestic currency against those of their overseas investment or businesses using the Forex daily rates.

Economic Events

Economic factors include economic conditions and policy making. For instance, a government can directly affect the interest rates displayed by its central bank by introducing new financial policies. Such measures can have serious knock-on effects on its currencies because investors tend to follow those currencies offering the highest yields. If such an announcement is made, then you can observe the effects on the applicable currency by studying the daily Forex rates.

Political Influences

If political instability and upheaval occur within a country then such events can have a significant negative influence on its economy and again on its currency. As such developments increase risk aversion, you will almost certainly witness the effected currency decline in value against those of others by examining the daily Forex rates.

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Thursday, April 19, 2012

Most Common Forex Currency Pairs - Dubai

Most Common Forex Currency Pairs - Dubai Forex Rates
Forex rates should be keep in mind if you are going to start currency trading. The basic rule should be ‘the more you know about the currency you trade, the better.” It is quiet rare that traders trade with exotic pairs which have limited data online but still, some experienced traders do tend to play with these pairs once in a while. People who are just starting out should stick with the major pairs.
About 98% of all Forex trading in UAE is conducted with the 7 major currency pairs that follow:

  • EUR/USD –  Euro vs. US Dollar,
  • USD/JPY – US Dollar vs. Japanese Yen
  • GBP/USD – Great British Pounds vs. US Dollar
  • AUD/USD – Australian Dollar vs. US Dollar
  • USD/CHF – US Dollar vs. Swiss Franc
  • USD/CAD – US Dollar vs. Canadian Dollar
  • NZD/USD – New Zealand Dollar vs. US Dollar
These currencies represent some of the world’s biggest economies. Considering that currencies are traded in sets, the US dollar covers about 84 percent of all foreign exchanges making this currency the universal currency in the planet. This is because the US economy is very important on a global scale as any changes in the political arena would have considerable effects worldwide.
There are some currency pairs that have high levels of liquidity compared with others because of the size of the economies they represent. As a starting point, a trader should look at the major pairs before deciding on which currency pair to trade. More liquidity means tighter spread, more predictability and more precise trade execution.
If you are looking to enter the world of online trading in Dubai , it’s crucial that you learn as much about the Forex market as you can and that should include the most common currencies traded in the Forex market. These currencies are directly reflective of what’s going on in the countries they represent and your knowledge about these can be worked into your trading strategies to realize profits.
The best currency pairs to trade are those that fit the trader’s Forex trading approach, style and preference. Search for pairs that give clear trading signals and chart patterns. In most cases, you will also need to consider the volatility, liquidity, spread, and trading range when choosing a Forex trading pair.

Monday, April 9, 2012

Dubai Forex Rates: Analysis in Forex Trading

Dubai Forex Rates: Analysis in Forex Trading - Dubai Forex Rates
According to the International Monetary Fund,  UAE has the lowest debt-GDP nation in the Middle East during 1998 – 2002 and it continued to be the one of the lowest in the subsequent years.  Because of its thriving economy, it is no surprise that businesses from different sectors around the world have favored UAE as an offshore market. Dubai  attracts numerous foreign investments in the private sector.  One sector that has been taking advantage of UAE’s stability is the Forex trading sector. Today, there are several Forex brokers in the country catering to UAE-based traders as well as traders in other GCC regions.

When it comes to the Forex market, most traders would agree that there are no two days that are the same With this market being in constant flux, each trade day is always unpredictable. Traders need to properly adjust to the ever changing landscape of this Forex market in order to succeed.  The ability to identify and interpret the trends are a highly sought after skill. But the fact is, any serious trader can achieve this provided with diligent and consistent training.

Fundamental and Technical Analysis

Traders who choose to delve deeper into the trends in the markets pay a considerable amount of attention to fundamental analysis and technical analysis.
Fundamental analysis consists of information about the macroeconomic, political and social factors affecting the market. A fundamentalist trader reviews any factor that will have an impact on the Forex rates or market prices. These types of people are likely to make decisions bases on economic views and releases.
Technical analysis on the other hand deals with the slight movements in Forex rates or prices as shown in technical tools like charts and statistics. Technical analysts also known as chartists, use different charts to obtain the data they need in making a decision. It should also count the factors that affect Dubai forex rates.   

Forex Trading Signals

The trading game has evolved over the past several years with Forex robots and signals sprouting out of the market. Amateur and veterans alike use Forex signals which comprise information on buy and sell orders sent by Forex analysts. Many Dubai Forex brokers provide these signals free.
Before making use of signals however, it’s important that you assess the methodology which the Forex broker or analyst uses to issue these signals. Do your best to learn about the Forex signal provider. Does it have a good record of accuracy? How are the signals issued? Are they given with clean cut trading suggestions or are they determined from uncertain terms?
Unless the Forex signal provider has a proven track record, it may be best for you to use trading signals as a research tool instead of depending on it entirely. 

Why You Should Choose a Regulated Forex Broker?

Why You Should Choose a Regulated Forex Broker? - Dubai Forex Rates
There are many Regulated forex brokers in UAE who are reliable and have good market reputation. This is no surprise considering that Dubai is fast becoming a financial hub in the Middle East. Online trading in Dubai is increasing with rapid pace and giving investors options to trade world markets locally.

Before you get started in trading currencies, you will first to open an account for Forex trading broker. There are thousands of Forex brokerage companies around the Internet.Just a search of "Forex brokers” in the search engines will bring up countless numbers of brokers which traders can trade with.

And with the growing list of Forex brokers in the trading arena, it becomes rather difficult to figure out which of these fits your criteria.  Each and every Forex broker has its own claims about how great its service and package is – some of which will shape the way traders come up with a decision.
When choosing a Best Forex broker Dubai, it’s a bad idea to sign up and trade with the first result that you see in the search engine. You should do thorough research to make sure you find the right broker for your trading needs and preferences. You need a dependable and competent trader which you can trust in every step of your trading venture. One should be careful regarding spread rates, leverage , regulations , live Dubai Forex rates before starting forex trading.

Regulation for Dubai Forex Brokers

Perhaps the most important thing you should look for in a Forex broker is whether it is regulated by a regional regulatory board. Regulatory boards are authorities that assure ethical trading practices within the trading community. They have a set of rules and regulations which these brokers must adhere to.

The traders that are regulated by these authorities e.g FSA UK are forced to keep transactions transparent with documented financial reports as they are required to provide these. Otherwise, the authorities have the right to fine them or terminate their membership.   These authorities also intervene in trader-broker disputes as well as provide helpful information for traders regarding how to avoid frauds and deceptions when choosing brokers.

Finding out whether a Forex broker is regulated is pretty much straightforward. Most brokers have information about this on their websites. You can also confirm this from the regulatory board where the broker claims to be registered in through their official site. Verify the CFTC registration and NFA membership status of your Forex broker firm and check for its disciplinary history. And lastly, make sure a UAE Forex traders will provide you the backing you need in case the market collapses and you need to withdraw your funds.There is more information on forex trading in Duba

Dubai Forex Rates: What Are the Factors that Affect Forex Rates?

Interest rates considerably contribute to the principal value of currencies. High Dubai Forex rates attract foreign investment and this produce an increase in the external demand for a certain currency. The central banks have a large influence over these interest rates as they manipulate both inflation and exchange rates. When interest rates decrease however, the exchange rates tend to decrease as well.
Dubai Forex Rates: What Are the Factors that Affect Forex Rates? - Dubai Forex RatesOver the past years, the UAE has taken significant steps to encourage foreign trade relations. In April last year, the UAE started implementing an agreement with Ankara regarding tourism trade fairs and conferences. And just recently, its trade relationship with Turkey stood at $2.78 billion (10 billion AED) in 2010.

Foreign Trade and Dubai Forex Rates

There are several different aspects that play an important role in Forex trading. One of the first things that a trader considers before deciding whether to trade a particular pair is the Dubai Forex rates and global Forex rates. If you have even just a basic idea about how the foreign exchange works, then you probably know how quickly the prices fluctuate in the markets. But what exactly are the things that affect these prices? Well, there are several and all these are related to the trading relationship between two countries. Below are the following:

Interest Rates

Interest rates considerably contribute to the principal value of currencies. High Dubai Forex rates attract foreign investment and this produce an increase in the external demand for a certain currency. The central banks have a large influence over these interest rates as they manipulate both inflation and exchange rates. When interest rates decrease however, the exchange rates tend to decrease as well.

Employment Outlook

The employment levels in a particular country have an immediate impact on its economic growth. When the level of employment increases, people have more buying power as they have more money to spend. On the other hand, if unemployment increases, consumers' spending falls. An increase in unemployment levels indicates a plummet in the economy and possible devaluation of a country's currency.


As a general rule, a country that consistently has a low inflation rate renders a rising currency value. In retail, more units of a certain currency are needed to buy certain commodities overseas. The countries with higher inflation rates generally see depreciation in their currency in comparison to the currencies of their trading partners.

Public Debt

Most countries engage in large scale financing in order to fund its public sector projects. However, while such ventures fuel their domestic economies, nations whose debts go out of control become unattractive to foreign investors. This is due to the fact that large debts have a high chance of inflation. And if the inflation rate is high, the debt will be serviced and ultimately paid off with cheaper real dollars in the future.

Political Stability and Economic Performance

The stability and economic performance of a country can attract foreign investors as they look for a stable country where they can invest their capital in. A thriving economy is more likely to gain a lot of investment funds than one that has more political and economic risk.


The Dubai Forex rates and global Forex rates move very quickly and unpredictably. From the above mentioned factors, there are several more attributes that make up each of these factors. That is why its' highly important for any trader to view Forex trading from a large scope and scale down into the small, but equally important aspects. Moreover, while the Dubai exchange rates are determined by numerous complex factors, investors should also consider how currency values and exchange rates would play in the rate of return on their investments.

Getting Started with Forex Trading UAE

Getting Started with Forex Trading UAE - Dubai Forex Rates

Dubai is generally considered as the financial and commercial hub of the Middle East. It has developed a market that is easily accessible by many countries in different ways. Many businesses around the world have moved or branched out to Dubai because of its strong Dubai Forex rates, investor incentives, protections and other benefits. One of the most thriving areas in the UAE is the Forex trading market.
The foreign exchange market is the largest financial market in the world having a massive average volume of USD 4 trillion per day. When compared to the New York Stock Exchange which has USD 50 billion trade a day volume, it is clear to see which one is the most active.

The Potential of Forex trading Dubai

When Forex trading became available to the average investors, more and more people, even those who have no background in online trading Dubai and investing get started in this venture. Much has been said about its potential of making a considerable amount of profit for traders. While profiting thousands of dollars from Forex trading is possible, this won’t usually be the case without proper training. A steep learning curve is involved here and anyone who wants to succeed in Forex trading should be willing to put up with this.

The Learning Curve of Forex Trading

Learning about Forex in Dubai usually take weeks to months. While some can get a hang of it in just a few days, others such as less technically-inclined people might take at least 3 months before they’re ready to trade.
The best way to learn about Forex trading is by practicing it using demo or practice accounts. These types of accounts are offered by most Dubai Forex brokers around the Internet today to allow beginners to trade without risking real money.
When a trader is ready to trade with real money, it is highly advisable to begin with a micro account. A micro account is one of the three types of accounts offered by Forex brokers namely: micro accounts, mini accounts and standard accounts. Basically, micro accounts are those that allow for trading to be done in increments of 1,000 units. When compared to mini and standard accounts, the micro accounts have the lowest risks involved as these allow for initial capitals of as low as $100.
By starting with micro accounts, a beginner will be able to trade in small sizes (lots) with less of an investment. This makes a suitable way to get their feet wet on Forex trading and Dubai Forex rates while not killing their budget.
Anyone who has the patience, discipline and the right motivation can learn how to trade Forex. But while Forex trading in UAE can be a lucrative venture; this can also be a very addictive one. If you are one of those people who have a gambling problem, then you should stay away from currency trading, Forex trading or any kind of trading for that matter considering the high levels of risk involved. you should also aware of the factors that Affect Forex Rates

Tuesday, November 8, 2011

Forex Trading Resouces

Forex and Dubai - a brief look

After the downturn of the real estate market in Dubai and around the world, many Dubai investors have shifted their focus to currency trading. The number of Dubai-based Forex brokerages has increased as more and more investors seek profit from currency trading. Dubai has a very diverse uptake in financial markets and some countries have established themselves as pioneers in the field since the 70’s while other nations are finally entering the electronic trading platform.

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Forex Market hours for Dubai brokers

For Dubai Forex brokers, the Dubai Gold and Commodities Exchange opens at 8:30 am and closes at 11:30 PM GST while the Dubai NASDAQ is open from 10:00 AM to 5:00 PM.

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Analysis - Forex Trading in Dubai

Forex Trading in Dubai – Is This is a Good Alternative to Real Estate Investment?

Forex trading in Dubai is evolving day by day. I remember before several years ago when I was searching for a Forex broker. It was indeed a time consuming and daunting task with the very limited choices available. But now, it is interesting to see several brokerage companies from USA, UK and Europe bringing their services into UAE with excellent features. This is not a surprise now as more and more people around the world are becoming aware of the potentials of Forex trading in UAE.

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What is Forex trading?

Forex Trading is indeed an interesting market in the finance sector. Many people around the world venture out to this activity ranging from individual businessmen to corporate entities. There are many capital markets to choose from and in this post, we will be focusing on the vast market of Forex. Foreign exchange or simply Forex, is the largest financial market in the world. Compared to the measly $74 billion a day volume of the New York Stock Exchange, the Forex market boasts a 4 trillion a day trade volume. The Foreign Exchange is not a Central Market rather, a comprised network of several thousand trading institutions which are comprised of Central Government banks, international banks, commercial financial companies. There is no central location associated with the Foreign Exchange market. However, there are a few key trading centers around the world namely New York, London, Tokyo, Frankfurt and Singapore. Mainly there are four forex markets hours which are located in -New York -London -Tokyo -Sydney.


Currency trading in Dubai

Currency trading in Dubai is very common and infect,one can say it is part time profit machine for residents of Dubai. I started currency trading during my job time, 3 years back. Initially, i started physical currency trading but soon i realize presence of online currency trading. Online currency trading is most advance , safe and fastest mode to start your part time business in Dubai or you can say anywhere :).
Currency trading can be very risky. It is very volatile market as compare to other financial markets.The base line for Forex or currency trading is to manage your risk line which should include your strategy and proper planning.