[Fahad]

Any day traders here who have dealt in the Emirati dirham? I’d love to check out some of your trade setups and charts.

Regards,

Fahad

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[James Barra]

Hi Fahad,

You can find an example setup in our guide to Forex Trading In The UAE. Scroll down to ‘A Forex Trade In Action’.

I would also draw your attention to the point the author has made about low trading volumes potentially leading to higher fees.

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[Fahad]

Very helpful to see the thinking laid out like this, thank you James and author.

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[Ian]

This wouldn’t be my first pick for day trading setups. The AED is pegged to the USD resulting in pretty low volatility that may hamper your ability to generate large returns.

It’s also less widely traded than currencies like USD and JPY resulting in less liquidity, wider spreads and just overall less attractive trading conditions.

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[Fahad]

Ok Ian, which currencies from the Middle East would you be looking at instead?

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[Ian]

Me personally, I’d look at the TRY and ISL. They aren’t pegged to the dollar. They display reasonable volume and liquidity. They are impacted by Middle Eastern events and geopolitical influences. You will find them on decent FX platforms.

 

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[Fahad]

Ok, thanks for the suggestion. I will explore further.

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[Author]

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