Binary options traders might not be familiar with NASDAQ Dubai, although this is nothing more than a new name for the Dubai International Financial Exchange. The purpose was to become the main stock exchange in the area and a link between Europe and Asia, an objective that was only partially achieved. The sad truth is that although many companies are listed here, most of the traders are focusing on DP World. Any trader who hopes to make profit need to place the emphasis on this stock, as the port operator is widely regarded as being one of Dubai’s most valuable assets.
Did NASDAQ Dubai failed to reach its full potential?
While the Dubai Financial Market was founded more than a decade ago, it only became a major player in the region after NASDAQ got involved. The 2012 outsource and the exchange consolidation was destined to make it easy for investors to trade NASDAQ Dubai. In theory it seems like a brilliant idea to make it easy to invest in local companies, given how prosperous the country has been, but something got lost along the way. Dubai is indeed open as a fully fledged market, but not enough companies are traded.
Those who are wondering whether it is wise or not to buy the index, are supposed to make a list of the prominent companies but the information is scarce. Without sufficient data it is easy to make the wrong decision, especially if you are trying to use a hedging strategy when trading binary options. The fact that even NASDAQ Dubai ensured that the common trading platform would be ready in time to accommodate DP World, speaks about how important this company is in the ecosystem.
DP World gradually reduces its presence
Although it might sound a bit excessive to downsize everything related to Dubai index strategies to how DP World is failing, this is what most binary options traders are doing. The company invested massively in the first few years of the last decade, but now it is gradually reducing its presence worldwide, starting with its Australian exposure. The company gave up most of its interests in five of the largest container port terminals in Australia and the beneficiaries were investors from Citi Infrastructure.
In the great scheme of things, this move doesn’t weigh too heavily, and is not necessarily a sign of weakness, but many regard this move as a turning point. Almost 2 years have passed since DP World decided to retain only 25% interest in those terminals, but since then no significant acquisitions were made. It wouldn’t hurt for binary options traders to tone down their enthusiasm and if not open a put option for DP World, then at least be extra careful when it comes to buying Dubai index.
read more about interesting binary options asset in Tradebinaryoptions.org.