Multi Asset Platform in the UAE
What is a multi assets trading platform?
The variety of web-based terminals and profile software makes the novice trader think about choosing an electronic trading platform for regular use. How to do it? First of all, it is necessary to define the main criteria that must be met by a quality software for making money on the financial markets. These include:
- The terminal should function without technical failures, including during liquidity growth.
- The functionality. A good platform should have enough tools for technical and computer analysis. When transferring indicators to the chart, the developers should provide the possibility to correct the input parameters.
- Commerce should be comfortable for a trader, that's why in a good terminal it is possible to change colours of indicators, background or the chart itself. Besides, the first impression of the platform is formed on the basis of a visual assessment.
- The absence of compatibility problems. If necessary, a trader should be able to install the platform to a mobile device.
- And of course the platform should be reliable and safe, protected from fraud and have the appropriate licence.
Why do you need a platform?
Everyone who wants to trade and invest has to face restrictions: individuals are not allowed by law to make transactions on the stock exchange. You will need an intermediary who will conduct transactions on your behalf. These intermediaries are called brokers. A multi asset trading platform gives you access to a variety of assets, and you can choose as you wish.
A broker is a company with a special licence that registers a client with the stock market, assigns codes for completed transactions, keeps track of funds and assets (e.g. bonds or shares) and makes settlements.
The broker opens an account for the client in which transactions are made. You can also use this account to track your transactions, analyse them and see your profits over a period of time.
So we have found that the main purpose of a brokerage site is to enable traders to participate in exchange trading. But beyond that, a multi asset trading platform has much more to offer.
One big advantage is the ability to analyse the chosen asset. You need to understand whether it is worth investing in it and for how long it is best to do so. For this, there is a fundamental analysis, which is presented on the website in the form of a news feed and an economic calendar. This analysis assesses macro- and micro-economic factors that influence the value of the asset.
You will also use technical analysis. It is equally applicable to any market - stock, commodity and currency. This is a prediction of how prices will change in the near future. It is made based upon how prices have moved in the past under similar circumstances. The analysis can be used for transactions of varying durations, from a few seconds to several years.
The main tools of technical analysis are charts and indicators.
By offering an easy-to-use interface, real-time quotes, clear navigation and a range of analysis tools, the broker website helps its clients become more successful in their investments.
Trading platform assets
Bidders take different approaches to realising the many opportunities to make arbitrage trades and enter new markets. The need for simultaneous trading between asset types is therefore particularly high today.
You can familiarize yourself with the products that you can buy on the broker's website before you start commerce on the platform.
The multi asset trading platform helps its clients diversify their portfolios easier than ever. You can buy multiple assets in one place. Then, in one account, see the results of your trades and choose the best asset for you.
Investment portfolio diversification is the process whereby an investment portfolio is re-distributed in such a way as to minimise or even eliminate all possible risks associated with losses.
A logical conclusion to draw from this is that a competent investor will never give his funds to a single asset or project. After all, if the project "goes bust", he will lose all his capital and end up on the bankruptcy's bench.
Companies issue shares in order to raise money from investors. Once an IPO (Initial Public Offering) takes place on a stock exchange, the company becomes open to outside investment. And market trading (speculative buying and selling, etc.) begins around the shares of companies, i.e. while the company uses the money of investors, investors use the shares for speculative or dividend income.
Speculative income means that dealers make money on shares by reselling them.
Platform for forex trading
There are many currency pairs available for forex trading.
Currency pair is a ratio of prices of two currencies. The first currency in the pair is called the base currency, and the second is called the quote currency.
There are 3 groups of currency pairs:
- Major currency pairs (Majors). Major currency pairs are currency pairs containing the US dollar and currencies of the most important countries (groups of countries).
- Cross rates (Crosses). Crosses are pairs that do not contain the US dollar. As a rule, they are less active than majors.
- Exotics. Exotics refer to intersections of currencies of minor countries with the US dollar and with each other.
Above all, there is macroeconomic data that influences exchange rates. A Forex trader should always follow the transnational economic news and related statistics: political developments, results of central bank meetings, latest data on unemployment, inflation rates, etc. Furthermore, wide fluctuations in quotations can be caused by the extent to which a country's central bank is involved in the local economy to control the money supply and general market sentiment.
Platform for trading options
First of all, an option is a stock market derivative; it is always based on some underlying asset. So, there cannot be just any option, but there can be an option on a particular stock, on an index or on gold.
An option is a contract between the buyer and the seller; in this contract the price and the expiration date are stipulated, after which the contract will take effect.
Options come in two varieties: call and put options. A call option is a contract to buy an asset on a specified date in the future at a price and quantity that is specified at that time. A put option is a contract to sell an asset on a specified date in the future for the price and quantity currently determined.
Also, popular are binary options - this is an exchange contract used to make money for the trader due to the movement of the price of an asset (currency, cryptocurrency, raw materials, shares) in the global financial market.
The profitability of the transaction is not determined by the price of the selected asset itself, but by the correct forecast specified by the trader in the opened transaction. A trader must indicate the direction of price movement just before the time of closing of a deal so as to gain profit.
Platform for trading commodities
Commodities are the most predictable among professional traders. Despite the predictability of quotations, commodities have a volatility level, which is comparable with currency pairs, making them rather a convenient instrument of making money.
The commodity exchange offers speculators the opportunity to earn through CFD (Contract for Difference) trading.
Thus, you can use commodities for intraday trading as well as for long-term trading. The most common commodities among traders are gold, silver and oil.
Platform for ETF trading
An ETF (Exchange Traded Fund) is an exchange listed investment trust. The funds invest in different assets and the result of the profit is an increase in the value of their shares.
An ETF is a type of fund which holds underlying assets (shares, bonds, futures, gold, currencies, etc.) and shares the ownership of these assets by the number of shares. An ETF in simple terms is a 'basket of shares', which can be bought on the stock exchange as a single share.
Cryptocurrency is a relatively new financial instrument that was created with the aim of becoming a decentralized means of payment for the purchase of goods and services. The main feature of this tool is that this money exists only in electronic form, and cryptocurrency transactions do not require a third party trusted to confirm the act of transferring money from one person to another.
Cryptocurrency trading is the same as online trading, but in this case, instead of the usual assets (currencies, stocks, etc.), the trader trades digital currencies (like bitcoin, etc.). This market, unlike binary options and forex, is even more dynamic and unpredictable, with attention constantly being fuelled by rate hikes.
So, there are really a lot of assets, and they all have their advantages. You can choose one or more assets on the multi asset trading platform. If at first you find it difficult to understand what you want and how to act correctly, we suggest you use the demo account. Here you can act without risk.
How to start using a multi asset trading platform in the UAE?
Getting started with a multi asset trading platform in the UAE is quick and easy. Anyone with internet access can start trading. You can choose to do it on your PC or smartphone, it is very convenient.
The first thing you have to do is to register on the broker's website. It is a simple algorithm. Fill in a short form, enter your email address and confirm your registration. After registering, you will be able to open an account.
You will be able to access a free demo account. This is for learning to trade or, if you are an experienced trader, you can take advantage of it to try out new techniques without the risk of losing money. All type of trading is done with virtual money. This is typically a large amount of money, which is enough to learn and understand the nature of trading different assets, as well as to choose your own trading tactics.
A multi asset trading platform in the UAE provides its clients with full functionality on a demo account.
This means that you will not be restricted by the indicators or the news if you trade with virtual money. There is only one difference from a regular account. You won't lose anything, but you won't make any profits either.
Opening a broker trading account
Once you have learnt how to use the multi assets trading platform, you can open a live account. And remember that all trading is risky and experienced traders do not advise starting with big sums, it is better to build up your portfolio gradually.
You need to find out what assets you want to trade, and then you can make a purchase. All the profit from your trades will also be credited to your account, and you will be able to withdraw it later on.
You will also be able to set a stop loss. A stop Loss is a market order placed by the trader in order to limit his losses in case the price moves in the opposite direction to the open position. If the market price reaches the value specified in the order, the transaction is closed.
Among other things, the platform is ready to offer leveraged trading. If an investor does not have enough money to close a transaction, he or she can borrow money from a broker. With the borrowed money, the investor buys securities or currencies and makes a profit. In the stock market, trading with borrowed money is called margin trading and the amount of credit is called leverage.
Good luck in trading!