Financial markets are those places where companies and people tend to buy or sell specific financial products, such as bonds and stocks, with different purposes. Their only intention, however, is to gain profit by means of making successful deals. As a rule, buyers wish to buy financial products at lowest prices, while sellers strive for selling them at the highest price possible. Nowadays, there are different types of financial markets depending upon the type of the financial product.
Financial Markets of the Arab Countries: Characteristics and Popular Trends
The most popular financial markets of the Arab countries include bonds markets, stock markets, money markets as well as currency and gold markets. Taking into consideration the fact that the basic function of the financial markets in the Arab economy implies trading stocks, this sphere remains the most popular in these countries. Thus, it is possible to state that stock markets, which trade shares of corporate ownership, remain the most significant capital markets in these countries that affect their economical development.
Stock trading in the Arab countries occurs for numerous reasons. These may involve short- and long-term investments, speculations, hedging, risk reduction and diversification of investments. Regardless the fact that stock markets are popular in the Arab countries, only some of them are included into the list of top 50 world markets based on the total traded value. The most popular market on this list is the Saudi Arabia market. The share of the Arab stock market to that of the world market remains limited, which is explained by the fact that this market is witnessing unstable trading periods manifested in regular market crises and frequent high price volatility.
Forex (Foreign Exchange) market is another financial market that is popular in the Middle East. Being the largest financial market in the world, it has witnessed remarkable development in the Arab countries over the last several years. Numerous resources state that the percentage of traders from the Arab countries has increased up to 40% as compared to the overall amount of Forex traders. This has become possible due to the economic development of these countries and the expansion of the Internet observed nowadays.
Forex Trading in the Arab Countries: Available Options
With the extensive development of Forex in the Middle East, the amount of people who wish to learn the basics of this process has also increased. They can find the required information about the most effective trading strategies, systems and trends at versatile websites. Residents of the Arab countries may choose to trade personally or with the help of brokers that provide comprehensive and integrated trading services to their clients. Both options have their pros and cons, so the choice should be made with regard to the experience, knowledge and financial abilities of a potential trader.