PhillipCapital DIFC Research Team

Growth Investing

Leave a Comment / Trading Strategies, Beginner, Educational Blogs / PhillipCapital DIFC Research Team

Growth Investing The High-Risk, High-Reward Strategy for UAE Investors Growth Investing Explained: How to Identify Companies with Above-Average Potential Growth investing is a forward-looking trading strategy that emphasizes capital appreciation and goes beyond simply selecting well-known stocks. Investors seek to accumulate substantial wealth over time by focusing on businesses—typically in the fintech, tech, or renewable energy sectors—that are anticipated to grow at a faster rate than their industry.In order to successfully navigate both local markets (such as the DFM and ADX) and international exchanges, investors in the UAE must grasp the complex details of this strategy. To help you strengthen your portfolio, we outline the key fundamentals of growth investing and how they apply in practice. What exactly is “Growth Investing” and how does it differ from other strategies? Growth investing is a strategy where an investor seeks out stocks of companies that are expected to grow their earnings and revenue faster than the average business in their industry or the market as a whole. Unlike value investors, who hunt for “undervalued” stocks trading for less than their intrinsic worth, growth investors are often willing to pay a premium (a higher Price-to-Earnings ratio) for a stock today because they believe in its massive future potential. These companies rarely pay dividends. Instead, they reinvest almost all their profits back into the business—hiring top talent, funding R&D, or acquiring competitors—to accelerate expansion. Think of the early days of companies like Amazon or Tesla; investors weren’t looking for immediate payouts, but rather exponential capital appreciation over the long term Ready to access global growth stocks? Explore our US Equities & ETFs to start building your portfolio today. Trade US Stocks Top High-Growth Sectors for 2025 To succeed in growth investing, you must look where the world is going, not where it has been. For 2025, several sectors are showing signs of “hyper-growth,” particularly relevant for UAE-based investors: Artificial Intelligence & Machine Learning: Beyond just chatbots, AI is revolutionizing healthcare diagnostics and logistics. Companies providing the infrastructure for AI (like chip manufacturers and data centers) are prime targets. Renewable Energy & Sustainability: With the UAE’s “Year of Sustainability” extending its legacy and massive projects like the Mohammed bin Rashid Al Maktoum Solar Park, companies involved in green hydrogen, solar tech, and battery storage are seeing huge inflows of capital. FinTech & Digital Payments: As Dubai cements its status as a global crypto and financial hub (via DIFC and VARA), firms innovating in blockchain, digital wallets, and cross-border payments are expanding rapidly. What are the primary risks associated with growth investing? High reward invariably comes with high risk. Because growth stocks are valued based on future expectations, any disappointment—such as a missed earnings target or a slowed user growth rate—can cause the stock price to plummet rapidly. This volatility is known as “valuation risk.” If a company is priced for perfection, the market will punish imperfection severely. Additionally, growth stocks are highly sensitive to interest rates. When rates rise, the cost of borrowing increases for these expansion-heavy firms, often compressing their profit margins and making their future cash flows less valuable in today’s terms. Want to hedge your growth portfolio? Learn how CFD trading can help you manage market volatility. Explore CFDs Key Metrics for Analyzing Growth Stocks You don’t need a Wall Street degree, but you do need to look at specific metrics that indicate true momentum: Historical Earnings Growth: Look for a track record of consistent growth (e.g., 20%+ year-over-year) over the last 3-5 years. Forward Earnings Growth: What do analysts predict for the next five years? The projection should remain above the industry average. Return on Equity (ROE): This reveals how efficiently management is using shareholders’ capital to generate profits. A rising ROE is a classic sign of a quality growth stock. Profit Margins: While early-stage companies might not be profitable yet, their margins should be improving. This shows that as they scale, they are becoming more efficient. Can I practice growth investing using local UAE stocks, or is it strictly for global markets? While the US market (Nasdaq/NYSE) is famous for tech growth stocks, the UAE is rapidly evolving. We are seeing a shift from traditional dividend-heavy banks and real estate firms to genuine growth stories. Tech & Digital: Companies listing on the ADX and DFM that are involved in AI, data management, and digital services are emerging as local growth plays. Real Estate PropTech: Traditional developers are launching digital arms and smart-city initiatives that offer growth-like characteristics. IPOs: The recent wave of IPOs in Dubai and Abu Dhabi often includes high-growth government-backed entities transitioning to the private sector, offering a unique hybrid of stability and growth potential Access Local and Global Markets Easily Open Your Account Today Open an account Is Growth Investing Right for You? Growth investing is ideal for investors who have a longer time horizon (5+ years) and the stomach to handle market swings. It requires patience and a commitment to research. By diversifying across high-potential sectors like AI and renewable energy, and balancing your exposure between global giants and emerging UAE local stars, you can build a portfolio designed for substantial wealth creation. Disclaimer: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors as you could sustain losses in excess of deposits. The products are intended for retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. The content of the Website must not be construed as personal advice. For retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. Rolling Spot Contracts

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Dec 17 – Daily Market Updates

Leave a Comment / Uncategorized, Daily Market Updates, Market Updates / PhillipCapital DIFC Research Team

dec 17 – Daily Market Updates Markets Daily — Broad Market Briefing Markets at a glance (indicative levels around 6:21 a.m. ET; data may be delayed) S&P 500 futures: 6879.20 Stoxx Europe 600: 582.00 China CSI 300: 4579.85 Bitcoin: 86789 WTI crude (front-month): 56 Opening take Global risk sentiment is constructive. US equity futures are modestly higher, European benchmarks advance, and mainland China outperformed overnight as enthusiasm around domestically listed tech names lifted broader indices. Energy is back in focus with crude rallying on renewed supply-risk headlines, while gold is firmer as real-rate expectations ease. The macro calendar is comparatively light today ahead of tomorrow’s delayed US inflation print, keeping moves measured and liquidity thin into year-end. Macro and policy United States: With the November CPI report due tomorrow, implied index swings have compressed relative to the outsized moves seen during the peak inflation-fighting period. Investors are placing more weight on signals of cooling labor demand and broader growth moderation as they assess the path for policy in 2025. Europe and UK: Inflation continues to drift lower into major central bank decisions. Markets expect cautious guidance as policymakers balance disinflation progress against lingering growth headwinds. Asia: China’s equity rebound remains a key focus as domestic tech and AI-linked listings draw capital. In Japan, attention stays on bond-market functioning and the gradual normalization debate. Equities Leadership and breadth: Energy and materials are bid on higher oil and steady precious metals. Defensives remain supported by lower real yields, while growth leadership is intact but more selective as investors reassess AI-linked earnings durability. Housing and consumers: A cautious tone from a large US homebuilder on orders, deliveries and margins underscores affordability challenges and supply constraints; peers could trade in sympathy. Technology and AI: The semiconductor cycle remains the market’s barometer for AI infrastructure demand. A closely watched memory maker reports after the close, with positioning elevated after a strong year-to-date run. Large platforms continue to explore deeper chip partnerships and alternative silicon, aiming to diversify supply beyond incumbent providers. Media and airlines: Deal headlines are driving dispersion. A major studio’s stance on a proposed transaction has knock-on effects across streaming partners, while renewed consolidation talks among low-cost carriers keep the airline complex in play. Health care and listings: Positive late-stage clinical updates in immunology are boosting select biotech names. In primary markets, a sizeable medical-supplies IPO coming to market is stoking hopes for a more active sponsor-backed issuance pipeline into next year. Fixed income and FX Rates: Treasury yields are little changed with the 10-year anchored ahead of CPI. The curve remains sensitive to incremental labor data and inflation revisions, while year-end balance-sheet constraints may dampen liquidity. Credit: Spreads are steady amid healthy primary issuance. Corporate borrowers tied to secular growth themes continue to access funding at favorable terms. Currencies: The dollar is rangebound; EUR and GBP edge firmer on softer inflation trajectories, while JPY stability reflects a cautious approach to policy normalization. Commodities Energy: Crude oil climbs on supply and geopolitical developments, with energy equities catching a bid. Inventory data and any incremental guidance from producers remain near-term catalysts. Precious metals: Gold is supported by lower real-rate expectations and seasonal hedging flows. Agriculture: Weather disruptions and trade frictions keep select soft commodities, including coffee, elevated relative to long-term averages. Digital assets Crypto markets are consolidating after a powerful multi-quarter advance. Spot ETF inflows have cooled, liquidity has thinned, and correlations to US equities have weakened, leaving prices more sensitive to positioning and derivatives funding dynamics. The day ahead — what to watch Data: US housing indicators and weekly energy inventories today; US CPI tomorrow. Policy: Central bank decisions in Europe and the UK later this week; select emerging-market meetings on deck. Earnings: Consumer staples before the bell; semiconductors and select software and internet names after the close; additional consumer and industrial results through the week. Strategy snapshot Into CPI, expect tempered index moves but higher single-stock dispersion tied to guidance and positioning. Quality growth remains supported by stable to lower real yields; energy benefits from improving commodity momentum; defensives offer ballast if data noise rises. Maintain diversification and be mindful of year-end liquidity conditions. Use volatility around macro prints to adjust exposures rather than chase gaps. Note: Market levels above are indicative and provided for reference only. This material is a general market commentary and does not constitute investment advice or a recommendation to buy or sell any financial instrument. Consider your objectives and risk tolerance before making investment decisions. Disclaimer: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors as you could sustain losses in excess of deposits. The products are intended for retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. The content of the Website must not be construed as personal advice. For retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. Rolling Spot Contracts and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of our retail client accounts lose money while trading with us. You should consider whether you understand how Rolling Spot Contracts and CFDs work, and whether you can afford to take the high risk of losing your money. Dec 17 – Daily Market Updates PhillipCapital DIFC Research TeamDecember 17, 2025 dec 17 – Daily Market Updates Markets Daily — Broad… Read More Dec 16 – Daily Market Updates PhillipCapital DIFC Research TeamDecember 16, 2025 Dec 16 – Daily Market Updates Markets Daily: A Broad,… Read More Dec 15 – Daily

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Components of Structured Products

Leave a Comment / Structured Products, Educational Blogs, Structured Products Basics / PhillipCapital DIFC Research Team

Components of Structured Products A Detailed Guide for UAE Investors In the diverse landscape of modern investing, structured products have emerged as a powerful tool for portfolio diversification. They bridge the gap between traditional savings and the dynamic world of the stock market. But what exactly goes inside these “pre-packaged” investments? At Phillip Capital DIFC, we believe that transparency is the foundation of wealth management. To help you make informed decisions, we are breaking down the anatomy of a structured product to understand exactly how they function, how they generate returns, and how they manage risk. What is a Structured Product? A structured product is a hybrid investment instrument. Think of it as a pre-packaged investment strategy that combines two distinct financial elements into a single contract. It typically merges a fixed-income security (like a bond) with a derivative (like an option). This combination allows the product to offer a customized risk-return profile that traditional assets cannot achieve on their own. For example, a structured product can be designed to provide capital protection while still offering the potential to profit if the stock market rises. They are “structured” to meet specific investor goals—whether that is capital preservation, yield enhancement, or access to hard-to-reach asset classes. What are the Main Components of a Structured Product? To truly understand a structured product, you must look under the hood. While they can vary in complexity, almost every structured product consists of three primary components: The Bond Component (Capital Protection): This is the safety engine of the product. The Derivative Component (Return Generator): This is the growth engine. The Underlying Asset: This is the reference market (e.g., Gold, S&P 500, or Apple stock) that determines the performance. These components are wrapped together into a single “Note” or “Certificate” issued by a financial institution. How Does the Bond Component Work? The bond component—often a Zero-Coupon Bond—is responsible for the “capital protection” feature found in many structured notes. Unlike a regular bond that pays you interest (coupons) every year, a zero-coupon bond pays no interest. Instead, it is sold at a deep discount. For example, a bank might sell a bond for $80 today, promising to pay back $100 in five years. In a structured product, the issuer uses a large portion of your investment (say, 80% to 90%) to buy this bond. This ensures that, at maturity, the bond will grow back to the original principal amount (subject to the credit risk of the issuer). This mechanism allows the issuer to promise that you will get your initial capital back, regardless of what the stock market does. Capital Protection with Smart Market Exposure Protect your principal while staying invested. Get Expert Investment Advice What is the Role of the Derivative Component? If the bond safeguards your money, the derivative works to grow it. The remaining portion of your investment (the cash left over after buying the bond) is used to purchase a Derivative, usually a Call Option. An option is a financial contract that gives the holder the right to profit from the movement of an asset. If the market goes up: The value of the option increases significantly, providing the “bonus” return or yield on the structured product. If the market goes down: The option may expire worthless. However, because your principal was secured by the bond component, you simply get your original investment back (in a fully capital-protected product) rather than suffering a loss. This clever engineering allows investors to participate in market upside with defined downside risks. What is the “Underlying Asset”? The “Underlying Asset” (or Reference Asset) is the specific financial instrument that the derivative tracks. The performance of your structured product is directly linked to how this asset performs. Common underlying assets include: Equities: Single stocks (like Tesla or Microsoft) or a basket of stocks. Indices: Major market benchmarks like the S&P 500, NASDAQ 100, or Euro Stoxx 50. Commodities: Gold, Silver, or Oil. Currencies: FX pairs like EUR/USD. For example, if you buy a “Gold-Linked Note,” Gold is the underlying asset. If Gold prices rise, your return increases based on the participation rate defined in the note. What is the “Wrapper”? The “Wrapper” is simply the legal form the product takes. In the UAE and global markets, structured products are most commonly issued as EMTN (Euro Medium Term Notes) or Certificates. Think of the wrapper as the box that holds the Bond and the Option together. It defines the legal terms, the maturity date (when the product ends), and the issuer (the bank responsible for paying you). It is crucial to note that because these are legal debts of the issuer, they carry “Counterparty Risk”—meaning if the issuing bank goes bankrupt, the capital protection might fail. This is why choosing a reputable broker and issuer is vital. Why Should UAE Investors Consider Structured Products? Structured products offer a level of customization that buying shares or ETFs directly cannot match. They allow you to say: “I want exposure to US Tech Stocks, but I don’t want to lose more than 10% of my money if the market crashes.” By adjusting the components (Bond vs. Option ratio), Phillip Capital can help you find products that fit your exact risk appetite, whether you are looking for: Yield Enhancement: Generating higher coupons in sideways markets. Participation: capturing market growth. Protection: Prioritizing the safety of your principal. Ready to Diversify Your Portfolio? Access bespoke structured notes—designed for yield enhancement or capital protection—guided by regulated experts at Phillip Capital DIFC. Open an account Contact us Disclaimer: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors as you could sustain losses in excess of deposits. The products are intended for retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with

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Dec 16 – Daily Market Updates

Leave a Comment / Market Updates, Daily Market Updates, Uncategorized / PhillipCapital DIFC Research Team

Dec 16 – Daily Market Updates Markets Daily: A Broad, Unbiased Look at Global Markets At a glance (as of 06:22 a.m. ET) S&P 500 futures: 6,864.25 (-0.24%) Stoxx Europe 600: 581.41 (-0.19%) Hang Seng: 25,235.41 (-1.54%) Bitcoin: 86,986.56 (+0.92%) WTI crude (front-month): 55.80 (-1.80%) Global mood Risk appetite eased to start the day as investors await a key US labor update. Equity futures in the US are a touch softer, Europe is modestly lower, and Asia ended mixed with notable weakness in Hong Kong. The dollar remains subdued near recent lows, oil extends its slide on signs of ample supply, and digital assets are firmer. What’s driving the session US labor print in focus: Markets are positioning cautiously into today’s employment report, which will shape expectations for the trajectory of interest rates into year-end and early 2026. A cooler jobs backdrop would reinforce the view that policy easing can proceed without reigniting inflation pressures; a hot reading would challenge that narrative and could steepen the front end of the curve. Europe mixed as growth and policy diverge: European equities are treading water with defensives and income-oriented shares outperforming cyclicals. Softer UK labor signals and moderating wage growth have strengthened the case for near-term policy easing by the Bank of England. Asia skews lower: Chinese and Hong Kong benchmarks remain under pressure amid lingering growth concerns and a pullback in tech-heavy segments. Regional performance was uneven, with select exporters and energy importers cushioned by lower oil. Oil drifts lower: Crude extends losses as supply indicators and risk-off positioning weigh. Refining margins and inventories remain in focus; energy equities may lag broader benchmarks if crude stays capped. Equities US: Futures point to a mild pullback after a strong multi-week run. Breadth and leadership remain in focus: recent sessions have seen participation broaden beyond mega-cap tech, a constructive sign for durability of the uptrend. Into the data, expect lighter volumes and intraday swing risk. Europe: Benchmarks are slightly negative with rate-sensitive sectors mixed. Lower yields have supported parts of the market, but earnings revisions and policy signals remain the key swing factors. Asia: Hong Kong led declines; mainland shares were weaker, while Japan and parts of ASEAN were more resilient. Lower energy prices helped transport and power-heavy pockets of the market. Fixed income and FX Rates: Front-end yields are anchored ahead of the data, with the curve sensitive to any shift in labor demand and wage dynamics. Markets continue to price a path toward easier policy over the next year, but the pace remains data dependent. FX: The dollar is hovering near multi-week lows as rate cut expectations firm and growth differentials narrow. Sterling is steady with BoE expectations skewing dovish on softer labor signals; the euro is range-bound. Commodities Energy: WTI trades below $60, adding to recent declines on evidence of comfortable supply and cautious demand assumptions. If the trend persists, it could ease headline inflation but weigh on energy capex and sector earnings momentum. Metals: Industrial metals are mixed amid cross-currents from China growth headlines and a softer dollar. Precious metals are little changed as investors balance lower yields against shifting risk sentiment. Digital assets Bitcoin is firmer, extending an upward bias as broader risk sentiment stabilizes and liquidity improves. Volatility remains elevated relative to traditional assets; position sizing and risk controls remain crucial for crypto exposure. Earnings and corporate themes Consensus earnings view: Street expectations continue to imply resilient profit growth over the coming quarters, with improving breadth beyond the largest technology names. The durability of margins, capital spending discipline, and a modest pickup in cyclical sectors are central to that outlook. Sector narratives: Autos and mobility are recalibrating electric-vehicle plans toward profitability and capital efficiency. Payments and fintech remain focused on licensing, compliance, and product expansion to drive engagement. IT services and consulting are emphasizing cost control and AI-enabled productivity to support margins. Structural watch: Europe’s long end European fixed income is preparing for portfolio shifts tied to pension and liability-hedging changes in parts of the region. Any rebalancing away from long-duration hedges could affect curve dynamics and relative-value relationships across maturities. Market depth is typically thinner into year-end, so execution and liquidity planning are key. Today’s key risks and watch list US employment report (08:30 a.m. ET): Jobs growth, unemployment rate, and wage trends will guide rate-path pricing and equity factor performance. Central bank signals: Messaging from major central banks this week will shape front-end rates, FX, and equity leadership. Liquidity/volatility: Year-end conditions can amplify moves; be mindful of wider bid-ask spreads and gap risk around data releases. Portfolio considerations Balance: Maintain diversified exposure across styles and regions; avoid concentration risk into binary macro events. Quality bias: In a slower growth, lower-yield setup, balance cyclicals with resilient cash flow and strong balance sheets. Duration and hedging: Consider whether current rate levels align with your duration targets; reassess hedges around key data. Market levels recap (06:22 a.m. ET) S&P 500 futures: 6,864.25 (-0.24%) Stoxx Europe 600: 581.41 (-0.19%) Hang Seng: 25,235.41 (-1.54%) Bitcoin: 86,986.56 (+0.92%) WTI crude (front-month): 55.80 (-1.80%) This publication is a general market update for information purposes only and does not constitute investment advice or a recommendation to buy or sell any security, asset class, or strategy. Market data may be delayed. Consider your objectives, risk tolerance, and financial situation before making investment decisions. Disclaimer: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors as you could sustain losses in excess of deposits. The products are intended for retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. The content of the Website must not be construed as personal advice. For retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital

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Initial Public Offering Process guide

Leave a Comment / Deliverable Equities, Educational Blogs, Stock Market Basics, Uncategorized / PhillipCapital DIFC Research Team

IPO (Initial Public Offering) Process From Private to Public In the dynamic world of global finance, few events capture the market’s attention quite like an Initial Public Offering (IPO). Whether it is a tech giant in Silicon Valley or a major utility provider here in the UAE, an IPO marks a transformative moment where a private company opens its doors to public ownership. For investors, understanding the lifecycle of an IPO is crucial. It is not just about the “opening bell”; it is a rigorous, regulated journey involving due diligence, valuation, and regulatory approvals. As a leading broker regulated by the DFSA, PhillipCapital DIFC believes in empowering our clients with the knowledge to navigate these opportunities with confidence. Below, we break down the complex machinery of an IPO into a clear, descriptive guide. What exactly is an IPO and why is it significant? An Initial Public Offering (IPO) is the process by which a private corporation offers its shares to the public in a new stock issuance for the first time. Before an IPO, a company is considered “private,” meaning its shares are held by a small group of founders, early investors (like venture capitalists), and employees. The significance of an IPO lies in the transition. When a company “goes public,” its ownership is democratized. The company gets access to a massive pool of capital from the public market to fund expansion, pay off debts, or invest in research and development. For the market, it introduces a new investment vehicle, allowing retail and institutional investors to own a piece of the company’s future. Why do companies choose to go through the rigorous IPO process? Going public is time-consuming and expensive, yet it remains a primary goal for many growing businesses. The motivations are multifaceted: Capital Injection: It is the most efficient way to raise large amounts of money without incurring debt. This capital can be used for mergers, acquisitions, or expanding operations. Liquidity for Early Investors: Founders and early private investors often use an IPO as an “exit strategy” to monetize their investments. Public Profile and Credibility: Public companies often enjoy greater prestige and brand awareness. Being listed on a major exchange like the DFM (Dubai Financial Market) or NASDAQ implies that the company adheres to strict regulatory standards, which builds trust with partners and customers. Currency for Acquisitions: Publicly traded shares can be used as currency to acquire other companies, rather than using cash reserves. What are the key stages of the IPO Process? The road to an IPO is a marathon, not a sprint. While timelines vary, the standard process involves these critical phases: Phase 1: Selection of Underwriters: The company hires investment banks (underwriters) to manage the process. They act as the intermediaries between the company and the investing public. Phase 2: Due Diligence & Regulatory Filings: This is the “health check” phase. Auditors, lawyers, and bankers scrutinize the company’s financials. In the UAE, this involves approvals from bodies like the Securities and Commodities Authority (SCA) or the DFSA (for DIFC listings). The company must file a “Prospectus”—a detailed document outlining its financial health and risks. Phase 3: The Roadshow: The company’s management travels (physically or virtually) to pitch the IPO to top institutional investors. This helps underwriters gauge interest and determine the potential demand. Phase 4: Pricing and Allocation: Based on the demand during the roadshow, a final offer price is set. Shares are then allocated to institutional and retail investors before trading begins. Phase 5: Listing and Trading: The shares are officially listed on the stock exchange, and secondary trading begins. This is when the general public can buy and sell the shares freely. Looking to diversify your portfolio with global or regional equities? Open a secure trading account with PhillipCapital DIFC today. Open an account Contact us How does the IPO process in the UAE/DIFC differ from global markets? While the fundamental principles remain the same, the regulatory landscape in the UAE is specific. The Regulators: On the mainland, the Securities and Commodities Authority (SCA) oversees IPOs. Within the Dubai International Financial Centre (DIFC), the Dubai Financial Services Authority (DFSA) is the regulator. Retail Subscription: In the UAE, IPOs often have a dedicated “retail tranche” (a portion of shares reserved specifically for individual investors). To participate, investors typically need a NIN (National Investor Number) for local exchanges like DFM or ADX. Book Building: Similar to global markets, the UAE has moved towards a “book building” process where the price is discovered based on investor demand within a price range, rather than a fixed price set in advance. What is the “Quiet Period” and why does it exist? The “Quiet Period” is a mandated window of time during the IPO process where the company and its insiders are legally restricted from making any public statements that could hype up the stock or influence investors. This regulation ensures that all investors have access to the same information—specifically, the data found in the official Prospectus. It prevents the company from inflating the stock price through marketing spin rather than financial reality. For investors, this period is a reminder to rely on the official documents and fundamental analysis rather than news headlines. How can retail investors participate in an IPO? Participating in an IPO can be an exciting opportunity to buy into a company at its “ground floor” price. Here is how you generally proceed: Have a Brokerage Account: You must have an account with a regulated broker. For international IPOs or specific regional allocations, a broker like PhillipCapital DIFC provides the necessary platform and access. Check Eligibility: Read the prospectus to ensure the IPO is open to retail investors in your jurisdiction. Subscription: During the subscription period, you place an order for the number of shares you wish to buy. Note that if an IPO is “oversubscribed” (more demand than shares), you may receive fewer shares than you requested. Funding: Ensure your account is funded to cover the subscription cost. Don’t miss the next big market

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Dec 15 – Daily Market Updates

Leave a Comment / Market Updates, Daily Market Updates / PhillipCapital DIFC Research Team

Dec 15 – Daily Market Updates Markets Daily | Broad Market Update Overview Global risk appetite stabilized to start the week. US equity futures edged higher as the recent selloff in large-cap technology cooled, while European benchmarks advanced and Asia was mixed with Japan lagging. Core government bond yields eased a touch, the dollar was little changed on balance, and commodities firmed with precious and industrial metals supported. Crypto prices also traded higher. Market snapshot Equities: US futures up modestly, Europe broadly higher with cyclicals and miners leading, Japan softer following recent strength; small caps showing signs of catch-up versus mega caps. Rates: Treasury yields drifted lower along the curve, with the long end outperforming; markets continue to debate the pace and extent of policy easing next year. FX: Dollar broadly range-bound against G10; selective strength in high-beta currencies alongside improved risk tone. Commodities: Gold hovered near cycle highs as real yields eased; copper recovered part of last week’s drop; oil steady within recent ranges. Digital assets: Major tokens advanced, with bellwether names extending month-to-date gains. Key themes we’re watching Rotation beyond mega-cap tech: After a multi-quarter run in AI-heavy leaders, investors are reassessing valuations and diversifying into under-owned areas. Flows continue to rotate toward economically sensitive sectors, select industrials, energy, and parts of health care, as well as small and mid caps. Market breadth improvement is a constructive sign for bulls. Soft-landing versus slowdown: Incoming data continue to point to moderating inflation and a cooler—but still resilient—labor market. Whether hiring decelerates gently or more abruptly will be pivotal for the rates path and equity leadership into the new year. Policy outlook: Markets are pricing additional policy easing across major developed economies in 2026, with the path dependent on labor trends and inflation stickiness. Communications from central bank officials remain focused on data dependence and financial conditions. China’s domestic demand: Recent figures suggest investment and household spending remain subdued, keeping external demand an important growth driver. This dynamic bears watching for global trade relations and commodity demand This week’s highlights (global) United States: A busy slate with labor data and inflation prints in focus. Markets will parse employment and consumer price figures for confirmation of disinflation alongside a gradual cooling in hiring. Retail activity and regional manufacturing surveys will add color on year-end momentum. Europe and UK: Flash PMI updates and inflation readings will set the tone ahead of holiday liquidity; policy signals remain cautious as growth stays uneven. Asia: Multiple rate decisions across the region, plus Japan inflation and activity gauges. China’s monthly data pulse is in focus for signs of stabilization. Latin America and Canada: Select policy meetings and retail/price data; Canada’s inflation and consumer trends will help shape early-2026 rate expectations. Sector and asset-class color Technology: Earnings revision dispersion is widening. While secular AI demand remains a tailwind for infrastructure names, investors are scrutinizing spending paybacks and potential cannibalization across software categories. Industrials/materials: Benefiting from rotation and firmer metals; watch guidance tied to capex cycles and order backlogs. Energy: Crude is range-bound as supply discipline offsets concerns about global growth. Integrateds and select services names continue to trade with implied volatility tied to OPEC+ headlines and inventories. Financials: Credit metrics remain solid overall; funding costs and the shape of the yield curve remain key swing factors for net interest margins. Precious metals: Support from lower real yields and macro hedging demand; dips continue to find buyers. Credit: Spreads are tight by historical standards; primary issuance windows may narrow into year-end, but liquidity remains orderly. What could move markets next Labor-market inflection: Any downside surprise in job growth or uptick in unemployment would likely extend the rally in duration and favor defensives over cyclicals near term; a firmer print could revive the “higher-for-longer” debate. Inflation progress: Core measures continue to trend lower, but services components are sticky. A faster decline would unlock greater policy flexibility. Policy messaging: Speeches from central bank officials will be parsed for guidance on the runway and cadence of future rate moves. Year-end dynamics: Rebalancing, tax-loss harvesting, and thinner liquidity can amplify short-term moves. Watch market breadth, leadership, and options positioning as catalysts. Risk radar Growth disappointments in China or Europe that spill over into global manufacturing and commodities. Earnings downgrades if margin resilience fades as pricing power normalizes. Geopolitical flare-ups affecting energy supplies or trade routes. Liquidity pockets into year-end that exacerbate intraday volatility. The near-term tone is cautiously constructive: a steadier rates backdrop, improving market breadth, and resilient earnings expectations support risk assets. The path from here hinges on labor and inflation data. A gradual cooling remains the “goldilocks” outcome for both equities and duration, while any sharp turn in employment would argue for more defensive positioning and longer-duration exposure. Note: This publication is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Markets are volatile and subject to change without notice. Disclaimer: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors as you could sustain losses in excess of deposits. The products are intended for retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. The content of the Website must not be construed as personal advice. For retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. Rolling Spot Contracts and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of our retail client accounts lose money while trading with us. You should consider whether you understand

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Forex Market Structure and Hours

Leave a Comment / Spot FX and CFDs, Educational Blogs, Forex Basics / PhillipCapital DIFC Research Team

Forex Market Structure and Hours The Complete Guide for UAE Traders The foreign exchange market is unique. Unlike the Dubai Financial Market (DFM) or the New York Stock Exchange (NYSE), it has no central physical location. It is a decentralized, global network that never truly sleeps during the working week. For traders in the UAE, understanding this structure and aligning your schedule with global liquidity centers is the first step toward disciplined trading. In this guide, we break down the invisible architecture of the forex market and map out exactly when you should be watching the charts from your desk in Dubai. How is the Forex Market Structured compared to the Stock Market? The structure of the forex market is often described as “decentralized” or “Over-the-Counter” (OTC). In a traditional stock market, there is a centralized exchange (like the Nasdaq) that acts as the middleman for all transactions, ensuring a standardized price. In Forex, the “exchange” is a tiered network of participants connected electronically. The Top Tier (Interbank Market): This consists of the world’s largest banks (like Citi, Deutsche Bank, Barclays) trading directly with each other. They determine the raw exchange rates. The Middle Tier: This includes hedge funds, commercial companies dealing in import/export, and retail market makers. The Retail Tier: This is where individual traders operate. You trade through a broker—like PhillipCapital DIFC—who provides you access to the interbank liquidity. Because there is no central exchange, the market relies on this network to function 24 hours a day. Prices may vary slightly from broker to broker, which is why choosing a broker with deep liquidity providers is crucial for getting tight spreads. Looking for institutional-grade access to this market structure? Explore our Forex Trading Accounts and access global liquidity. Explore Forex & CFD Trading What are the Key Forex Trading Sessions in UAE Time? Since the market follows the sun, it cycles through four major financial hubs. For a trader based in Dubai (Gulf Standard Time), the schedule is incredibly convenient because the UAE is geographically positioned between the East and West. Here is the breakdown of the major sessions in UAE time (approximate, subject to Daylight Savings changes): Sydney Session: Opens approx. 1:00 AM – Closes 10:00 AM (UAE Time). This is the start of the trading day. Volatility is generally lower here, with a focus on AUD and NZD pairs. Tokyo Session: Opens approx. 3:00 AM – Closes 12:00 PM (UAE Time). The Asian session picks up momentum. JPY pairs see the most action here. London Session: Opens approx. 11:00 AM – Closes 8:00 PM (UAE Time). This is the heavyweight session. London is the financial capital of the forex world, handling roughly 43% of all global transactions. Trends often begin here. New York Session: Opens approx. 4:00 PM – Closes 1:00 AM (UAE Time). The US dollar is involved in 90% of all trades, making this a highly volatile and liquid session. Why is the market open 24/5, and does it ever close? The market stays open 24 hours a day during the week because as one financial hub closes, another opens. However, it does close for the weekend. Market Open: Monday morning in New Zealand (which is roughly roughly roughly Sunday late night/Monday early morning in Dubai). Market Close: Friday afternoon in New York (which is roughly Saturday very early morning in Dubai). It is important to note that while you can trade at 3:00 AM on a Tuesday in Dubai, liquidity might be thinner compared to the afternoon. Thin liquidity can sometimes lead to “slippage” or wider spreads, which is why understanding market structure is vital for risk management. How do Public Holidays affect the Market Structure? Since the market is decentralized, a public holiday in the UAE does not stop the global forex market. However, if it is a bank holiday in London (UK) or New York (USA), liquidity will drop drastically, and the market may become “rangy” (moving sideways). Conversely, if it is a holiday in Japan but not in Europe, the JPY pairs might be quiet, but the EUR and GBP pairs will trade normally. A smart trader checks the economic calendar daily to see which centers are offline. Does PhillipCapital DIFC offer access to all these sessions? Yes. As a broker regulated by the DFSA (Dubai Financial Services Authority), PhillipCapital DIFC provides you with the infrastructure to trade major, minor, and exotic currency pairs 24 hours a day, 5 days a week. Whether you are an early riser trading the Tokyo breakout or an evening trader focusing on the US heavy hitters, our servers are connected to the global grid. We combine this global access with local security. Your funds are segregated, and you are trading with a broker that has a physical presence right here in the Dubai International Financial Centre. Frequently Asked Questions (FAQs) US Market Hours in UAE Time (GST) Session Timing (Nov – March) Timing (March – Nov) Market Opens 6:30 PM 5:30 PM Market Closes 1:00 AM 12:00 AM (Midnight) Why does the US market opening time change in the UAE? The shift happens because the United States observes Daylight Saving Time (moving clocks forward in March and back in November), while the UAE maintains Gulf Standard Time (GST) all year round. This creates a one-hour difference in the local opening time between the summer and winter months. London Forex Session Timing (UAE Time – GST) Season Timing (Nov – March) Timing (March – Oct) Session Opens 12:00 PM 11:00 AM Session Closes 9:00 PM 8:00 PM When is the best time to trade the London session from the UAE? The most active period is during the London and New York overlap, which currently occurs from 5:00 PM to 9:00 PM GST. This is when trading volume is at its peak, providing the highest liquidity and tightest spreads for major currency pairs like GBP/USD and EUR/USD. What is the best time to trade Forex in the UAE? The most optimal time to trade is

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Weekly Global Market News – Dec 15

Leave a Comment / Market Updates, Weekly Global Market Update / PhillipCapital DIFC Research Team

Weekly Global Market News – Dec 15 Week Ahead: Rates, inflation and jobs take center stage Overview A packed macro week will see three major central banks set policy, fresh inflation prints across multiple regions and a run of employment data. Markets will be parsing signals on how far the global easing cycle has to run in Europe and the UK, and whether Japan edges further away from ultra‑loose policy. Corporate news flow is busy too, with bellwether results in tech, logistics, consumer and travel. Top themes to watch 1) Central banks: BoE, ECB, BoJ Bank of England (Thu): A 25bp trim to 3.75% is widely expected after October GDP contracted 0.1%. The statement, vote split and guidance will be the market movers. Key questions: is this the last cut for a while, and how concerned is the MPC about sticky services inflation? Watch GBP front‑end gilts and the belly of the curve; a dovish vote split and soft CPI could bull‑steepen gilts. A more hawkish tone (limited room for further cuts) would support GBP. European Central Bank (Thu): Broadly expected to hold. Officials have recently framed inflation risks as more balanced. November HICP (Wed) is seen a touch higher at around 2.2% y/y, which should reinforce a steady hand. Market focus: staff assessment of growth/inflation balance, any hints on the pace of balance‑sheet runoff in 2026, and whether the door stays open to cuts next year. Watch EUR rates and periphery spreads. Bank of Japan (Fri): Decision is finely balanced, with odds tilted slightly toward another step away from negative/near‑zero rates following recent commentary from Governor Ueda. A move would have global spillovers: a firmer JPY, upward pressure on global yields, and potential headwinds for carry trades. If the BoJ stands pat, expect relief in carry and a softer yen near term. Also watch Friday’s Japan CPI. 2) Inflation and employment data UK (Wed): CPI/PPI for November. Services inflation and core momentum matter most for MPC reaction. Friday brings UK retail sales, public finances and the latest banking sector regulatory capital snapshot. Eurozone (Wed): Final HICP for November alongside Monday’s October industrial production. Any upside surprise in core would complicate the ECB’s hold‑for‑now stance. US (Tue/Thu/Fri): November employment report arrives Tuesday (re‑scheduled), followed by Thursday’s real earnings and CPI (revised release), plus Friday’s University of Michigan sentiment. Given recent shutdown delays, revisions could carry extra weight for the Fed’s growth/inflation mix. Canada (Mon): November CPI – important for the BoC’s early‑2026 path. Japan (Mon/Fri): Tankan survey (Mon) will color growth and capex expectations; CPI (Fri) anchors BoJ decision risk. Australia (Thu): Labor force data could tweak RBA expectations at the margin. Mexico and Norway (Thu): Policy decisions that feed into EM FX and Nordic rates. 3) Politics and policy risks to headline tape Berlin talks on Ukraine (week): Germany’s Chancellor Friedrich Merz hosts UK PM Sir Keir Starmer, France’s President Emmanuel Macron and potentially a US delegation to explore peace options. Any signals on funding and security guarantees could briefly swing EU risk sentiment. UK domestic calendar: The Prime Minister faces a Liaison Committee grilling Monday on delivery against the government’s “plan for change.” The British Medical Association will report Monday on doctors’ industrial action; a five‑day strike in England from Wednesday is possible. Health Secretary Wes Streeting appears before MPs on Wednesday. EU Council (Thu–Fri): Leaders meet in Brussels; watch for budget, defense and enlargement headlines. Trade and global forums: WTO General Council (Tue); Mercosur Summit (Sat), with the EU–Mercosur deal back in view. Earnings and corporate highlights Tuesday: Hollywood Bowl (FY), IG Group (trading update), SThree (FY trading update) Wednesday: General Mills (Q2), IntegraFin (FY), Lennar (Q4), Micron Technology (Q1), Serco (pre‑close) Thursday: Accenture (Q1), CarMax (Q3), Cintas (Q2), Currys (HY), Darden Restaurants (Q2), FedEx (Q2), Nike (Q2). Also noteworthy: court sanction expected for Alphawave IP’s acquisition by Qualcomm. Friday: Carnival (Q4), ConAgra Brands (Q2), Lamb Weston (Q2), PayChex (Q2), WHSmith (FY) – investors will look for clarity after the company flagged more time was needed to finalize accounts. Trading playbook by asset class • Rates UK: A 25bp cut is largely priced. Dovish risks: softer CPI and a wide pro‑cut majority could flatten the front end. Hawkish risk: “pause after this cut” language re‑steepens. Eurozone: Hold + balanced inflation messaging keeps Bunds range‑bound; periphery sensitive to any balance‑sheet hints. Japan: A hike/less‑accommodative tilt lifts JGB yields and can ripple into USTs/Bunds. No change likely bull‑flattens JGBs. • FX GBP: Direction tied to MPC tone and CPI. Dovish cut could push EUR/GBP higher; hawkish hold‑open may support cable. EUR: Steady ECB and marginally firmer HICP favor consolidation; EUR sensitive to periphery spreads and global risk tone. JPY: Asymmetric risk around BoJ – policy tightening or guidance upgrade supports yen broadly; no change keeps JPY soft but vulnerable into year‑end rebalancing. USD: Jobs/CPI revisions and Fed‑speak cadence drive DXY. Soft data plus firm risk appetite tends to weigh on USD; risk‑off or stronger labor data supports it. • Equities Europe/UK: Rate stability plus cooling inflation is constructive for duration‑sensitive sectors (quality growth, staples), while banks track curve moves. UK domestics react to retail sales and consumer sentiment; BoE guidance key for housebuilders. US: Micron, FedEx and Nike offer signals on semis cycle, global trade/parcel volumes, and consumer demand mix into 2026. Japan: Stronger JPY on BoJ tightening is a headwind to exporters but can boost domestic defensives. • Credit Steady ECB and a well‑telegraphed BoE cut are supportive for spreads; watch periphery and HY for sensitivity to growth downgrades. Corporate results (FedEx/Nike) will guide consumer and logistics credit tone. • Commodities Macro‑driven week: global PMIs and policy outcomes likely dominate energy/metals via growth expectations; watch USD path for gold. The week at a glance (selected) MONDAY OECD: G20 GDP growth report Canada: November CPI EU: October industrial production Japan: December Tankan business survey UK: Rightmove House Price Index TUESDAY Global: S&P Global flash PMIs (Eurozone, France, Germany, India, Japan, UK, US) UK: December labor market report; UK

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Dec 12 – Daily Market Updates

Leave a Comment / Market Updates, Daily Market Updates / PhillipCapital DIFC Research Team

Dec 12 – Daily Market Updates Markets Daily — Broad Market Update As of 06:04 a.m. ET Market snapshot S&P 500 futures: 6,897.75 (-0.14%) Stoxx Europe 600: 583.38 (+0.35%) US 10-year Treasury: 4.164% (+1 bp) Hang Seng: 25,976.79 (+1.75%) Bitcoin: 92,465.63 (-0.45%) Overview Global equities remain near cycle highs, with Europe advancing and US futures easing modestly after a strong run. Asia finished mixed but was led higher by Hong Kong. Government bond yields are broadly steady, with the US 10-year hovering near 4.16% as markets weigh a gradual path toward lower policy rates. Risk appetite is being supported by resilient profit trends, improving market breadth, and an outlook for easier financial conditions into next year. Equities US: After setting fresh records, futures point to a softer open as investors digest gains. Participation has broadened beyond a handful of leaders, with cyclical and defensive pockets both contributing. Positioning remains constructive but less euphoric than earlier momentum-driven phases, which can help sustain rallies into lighter year-end liquidity. Europe: Broad indices are firmer, helped by industrials and financials. Easing energy costs and fading inflation pressures continue to underpin sentiment, though growth signals remain mixed across the region. Asia: Hong Kong outperformed, while other major markets were mixed. Policy support measures and signs of stabilization in parts of the Chinese economy continue to be monitored by investors. Fixed income US Treasuries are little changed, with curve dynamics sensitive to incoming data and central bank communication. The balance between easing inflation and steady growth is keeping real yields in focus. Credit spreads remain tight, reflecting robust demand for quality income and contained default expectations. Primary issuance is seasonally lighter into year-end. Currencies The US dollar is broadly range-bound, with the medium-term trajectory tied to relative rate differentials. If the Federal Reserve continues to guide toward gradual easing while other central banks hold steady or turn less accommodative, the dollar could face a softer backdrop. Major pairs may remain headline-driven into upcoming data and central bank appearances. Carry dynamics and volatility levels remain key for tactical positioning. Commodities Precious metals extend recent gains, supported by lower real yields and portfolio hedging demand. Energy prices are steady, balancing supply risks with a still-moderate demand outlook. Inventory trends and producer guidance into year-end remain important signals. Industrial metals are supported by capex tied to electrification, data infrastructure, and grid investment, though short-term moves remain sensitive to China data and the global growth pulse. Digital assets Crypto prices are consolidating after a strong multi-month advance. Beyond price action, institutional infrastructure continues to evolve, with ongoing work on tokenization, settlement, and market plumbing. Regulatory enforcement remains active, emphasizing the importance of risk controls and counterparties. What’s driving markets now Policy path: Markets continue to price a measured easing cycle over the next year, conditional on inflation progress and growth durability. Earnings resilience: Profit margins and cash flows have held up better than feared, encouraging risk-taking beyond a narrow set of leaders. Market breadth: A wider set of sectors participating has historically been a constructive signal for trend sustainability. Year-end dynamics: Rebalancing flows, lower liquidity, and tax considerations can amplify moves in both directions into late December. What to watch next Inflation updates across major economies Retail sales and high-frequency growth indicators Central bank remarks and meeting minutes Credit conditions, issuance windows, and year-end liquidity Market breadth, volatility, and leadership rotation Risk radar Re-acceleration in inflation or wages that challenges the easing narrative Growth disappointments in the US, Europe, or China Geopolitical shocks impacting energy and supply chains Tight market liquidity into year-end amplifying price swings The backdrop remains constructive: moderating inflation, expectations for gradual policy easing, and improving breadth are supporting risk assets. After a strong run, near-term consolidation would be typical, but the medium-term narrative still favors disciplined exposure, selective quality, and attention to portfolio ballast. Disclaimer: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors as you could sustain losses in excess of deposits. The products are intended for retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. The content of the Website must not be construed as personal advice. For retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. Rolling Spot Contracts and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of our retail client accounts lose money while trading with us. You should consider whether you understand how Rolling Spot Contracts and CFDs work, and whether you can afford to take the high risk of losing your money. 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Types of Derivatives: Futures, Options, Swaps, and Forwards

Leave a Comment / Exchange Traded Derivatives, Derivatives Basics, Educational Blogs / PhillipCapital DIFC Research Team

Types of Derivatives Futures, Options, Swaps, and Forwards In the dynamic financial landscape of the UAE, understanding the instruments at your disposal is the first step toward building a resilient portfolio. Derivatives are powerful financial contracts that derive their value from an underlying asset—be it stocks, commodities like Gold, currencies like the AED or USD, or interest rates. As a DFSA-regulated broker, PhillipCapital DIFC is committed to elevating your market knowledge. In this guide, we break down the four pillars of the derivatives market—Futures, Options, Swaps, and Forwards. What are Futures Contracts and how are they used in the UAE? A Future is a standardized contract to buy or sell a specific asset at a predetermined price on a set future date. Unlike “buying the asset now,” you are agreeing to a transaction that will happen later, but the price is locked in today. In the UAE context, Futures are incredibly popular for two main purposes: Speculation and Hedging. Speculation: Traders might buy a DGCX Gold Future if they believe gold prices will rise, allowing them to profit from the price movement without storing physical gold bars. Hedging: A construction company in Dubai might sell Copper Futures to lock in costs, protecting themselves if material prices spike before a project begins. At PhillipCapital DIFC, we provide access to global exchanges (like CME and ICE) and local powerhouses like the Dubai Gold & Commodities Exchange (DGCX), giving you access to liquid markets for currencies (like INR/USD), commodities, and indices. Ready to trade the future? Access global Futures markets including DGCX Gold and S&P 500 contracts with a regulated broker. Open an Account How do Options differ from Futures? While Futures obligate you to fulfill the contract, Options give you the right—but not the obligation—to buy or sell. This key difference makes Options a versatile tool for risk management. Call Option: Gives you the right to buy. You might buy a Call on a US Tech stock if you think it will skyrocket but want to limit your risk to just the “premium” you paid for the option. Put Option: Gives you the right to sell. This is often used as “portfolio insurance.” If you own a portfolio of GCC equities and fear a market downturn, buying Put options can offset potential losses in your stock holdings. Options allow for complex strategies that can profit from volatility itself, not just direction. What are Swaps and are they available to retail investors? Swaps are derivatives where two parties exchange cash flows or liabilities from two different financial instruments. The most common type is an Interest Rate Swap, where one party exchanges a floating interest rate for a fixed one to manage exposure to rate fluctuations. Generally, Swaps are Over-The-Counter (OTC) instruments utilized by institutions, banks, and corporations rather than individual retail traders. For example, a Dubai-based corporation might use a swap to convert a variable-rate loan into a fixed-rate one to predict future expenses accurately. Note: While standard swaps are institutional, retail traders at PhillipCapital often encounter “Swap Points” or “Rollover fees” in FX trading, which function on similar principles of interest rate differentials between two currencies What is a Forward Contract and how is it different from a Future? A Forward is very similar to a Future—it is an agreement to buy/sell at a future date. However, the key difference lies in standardization. Futures are traded on exchanges (like DGCX or CME), meaning they have standardized sizes, expiration dates, and are cleared to remove counterparty risk. Forwards are private, customizable agreements between two parties (OTC). You can customize the exact date and amount. Because they are private, Forwards carry counterparty risk (the risk the other guy doesn’t pay up). For most individual traders, Futures or CFDs (Contracts for Difference) are the preferred route as they offer the liquidity and safety of a regulated exchange environment. Looking for customizable exposure? Experience forward-like flexibility with easy-to-trade CFDs. Explore CFDs Which derivative is right for my strategy? Choosing the right instrument depends on your goal and capital: For pure volume & low cost: Futures are often preferred for their tight spreads and high liquidity, especially on indices and commodities. For strategic flexibility: Options are ideal if you want to define your maximum loss (the premium) upfront while keeping upside potential open. For short-term flexibility: CFDs (offered by PhillipCapital) allow for smaller contract sizes than Futures, making them suitable for traders who want to hedge specific amounts without buying full-sized contracts. Why trade derivatives with a regulated broker like PhillipCapital DIFC? Derivatives involve leverage, which amplifies both gains and risks. Trading with a DFSA-regulated entity ensures: Segregated Accounts: Your funds are kept separate from the company’s operational funds. Transparency: No hidden fees or “phantom” execution. Global Access: One account gives you access to 15+ global exchanges, bridging the gap between Dubai and Wall Street. Conclusion Mastering the mechanics of Futures, Options, Swaps, and Forwards transforms how you approach market volatility—turning potential risks into calculated opportunities. Whether you are a corporate treasurer looking to hedge exposure or a savvy trader seeking leverage on the DGCX, the right infrastructure makes all the difference. As a DFSA-regulated broker, PhillipCapital DIFC offers you the security, technology, and global reach needed to trade these complex instruments effectively. Don’t just watch the markets move; position yourself to profit from them with a partner you can trust. Disclaimer: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors as you could sustain losses in excess of deposits. The products are intended for retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. The content of the Website must not be construed as personal advice. For retail, professional and eligible counterparty clients. Before deciding to trade

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