July 16, 2024

Navigating the financial derivative market in the UAE

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Navigating the financial derivative market in the UAE
Navigating the financial derivative market in the UAE (Representational image)

The Abu Dhabi Stock Exchange (ADX) has had a huge influence on trading platforms with the introduction of derivative market trading in the Gulf in late 2021. This new addition gives the investors increased leverage, greater opportunities, market exposure, and hedge capabilities in the long run. This initiative by the bourses is part of a larger trend in the trading industry to broaden their product offerings and give total assistance to traders while bringing new things to an already crowded trading environment.

Derivative Markets Driving the Economy

According to estimates released in November 2022, the ADX derivative market increased in value to 1 billion AED within the first year of operation. During that time, a large number of contracts were exchanged. This introduction was part of ADX’s effort to position its goods and services in line with those of its worldwide competitors. The market attracted 1718 investors in the first year of its inception, and this figure more than quadrupled the following year, attracting an increasing number of investors to try their luck in this volatile market.

Derivative Markets Driving the Economy
Representational image

Various organizations are stepping forward to participate in the most recent derivative markets. One such firm, CPT Markets, has created quite an impression in the trading scene. Apart from being a brokerage business, the CPT markets have gone a long way to indulge in the forex and contract for difference (CFD) markets.

Substantial investments in derivative markets:

According to a study provided by the banks for international settlement, the second half of 2021 saw the largest investments, with a total of 12.4 trillion USD invested by all significant corporations. Over-the-counter derivative markers gained significant relevance in this regard in 2014. CPT markets, a Belize based brokerage, being a  top investor, enjoyed huge profits. Additionally,  CPT Markets has recently collaborated with multiple platforms such as Coin Payments, Triple A and Letknow Pay, offering comprehensive solutions, and promoting a seamless trade. With regards to the level of commitment and dedication shown by CPT markets, they were awarded the Leading Provider of International Financial Derivative UAE 2023 by the International Business Magazine.

The bottom line:

Because, the derivative markets are expanding at such a rapid rate, stockholders and other shareholders are having a great time thanks to the sophisticated feature that allows hedgers to lock in asset values. Companies like CPT markets are taking maximum measures to protect their clients from the highly volatile, rapidly changing nature of derivative trading.

Blog by Madhulika pandey

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