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What is Spot FX Trading and How Does It Work?

Leave a Comment / Spot FX and CFDs, Educational Blogs, Forex Basics, Uncategorized /

Decoding the Market What is Spot FX Trading and How Does It Work? In the world of global finance, the foreign exchange (Forex) market stands as the largest and most liquid asset class, with trillions of dollars exchanged daily. At the heart of this ecosystem is Spot FX, the primary vehicle for currency exchange. But for traders in the UAE and beyond, understanding the mechanics of “on-the-spot” trading is crucial before entering the market. In this , we break down exactly what Spot FX trading is, how it functions in the DIFC regulatory environment, and why it remains a popular choice for sophisticated investors. What exactly is Spot FX Trading? Spot FX (Foreign Exchange) trading refers to the purchase or sale of foreign currencies for “immediate” delivery. Unlike futures or options—which are contracts to buy or sell at a specific date in the future—a spot deal is settled effectively “on the spot.” Technically, while the price is agreed upon instantly, the standard settlement period for most currency pairs is T+2 (two business days after the trade date). This short timeframe is why it is called the “spot” market; it reflects the current market price of a currency right now, rather than a speculative price for next month or next year. When you trade Spot FX, you are participating in the Over-the-Counter (OTC) market. There is no central physical exchange like the New York Stock Exchange. Instead, trades are conducted electronically between a network of banks, brokers (like PhillipCapital DIFC), and liquidity providers, ensuring the market operates 24 hours a day, 5 days a week. How does a Spot FX trade actually work mechanically? Mechanically, every Forex trade involves the simultaneous buying of one currency and the selling of another. This is why currencies are always quoted in pairs, such as EUR/USD or GBP/USD. Let’s break down a trade using the EUR/USD pair: Base Currency (EUR): The first currency in the pair. Quote Currency (USD): The second currency in the pair. If the EUR/USD price is 1.1050, it means 1 Euro is worth 1.1050 US Dollars. Buying (Going Long): If you believe the Euro will rise in value against the Dollar, you buy the pair. You profit if the exchange rate goes up. Selling (Going Short): If you believe the Euro will weaken against the Dollar, you sell the pair. You profit if the exchange rate goes down. In the context of Spot FX with a broker, you are typically trading on margin. This means you don’t need to put up the full value of the €100,000 contract. Instead, you put up a small percentage (margin) to open the position, allowing for capital efficiency. Ready to access global currency markets? Explore Spot FX & CFDs How is Spot FX different from Currency Futures? This is a critical distinction for professional traders. While both instruments allow you to speculate on currency movements, their structure differs significantly: Settlement Date: Spot FX: Settles almost immediately (T+2). However, most retail and professional traders “roll over” their positions to avoid physical settlement, effectively keeping the trade open indefinitely. Currency Futures: Have a fixed expiration date (e.g., usually the third Wednesday of the delivery month). You are trading a contract that expires in the future. Market Structure: Spot FX: Decentralized (OTC). Prices can vary slightly between brokers but generally track the global interbank rate. Currency Futures: Centralized exchange trading (e.g., DGCX or CME). Prices and volumes are recorded on a central exchange. Contract Size: Spot FX: Highly flexible. You can trade micro lots (1,000 units) or standard lots (100,000 units), allowing for precise position sizing. Currency Futures: Standardized contract sizes that cannot be customized. What are the primary benefits of trading Spot FX? Spot FX is the preferred instrument for many active traders due to several unique advantages: Deep Liquidity: The Forex market sees over $6 trillion in daily turnover. This liquidity means you can usually enter and exit trades instantly without significant price slippage, even in large sizes. 24/5 Accessibility: The market follows the sun, opening in New Zealand/Australia on Monday morning and closing in New York on Friday afternoon. This allows you to react to news events (like US Non-Farm Payrolls or ECB interest rate decisions) whenever they happen. Leverage: Spot FX allows traders to control large positions with a smaller initial deposit. While this increases profit potential, it is vital to remember that it also increases risk. Two-Way Opportunities: Unlike buying stocks where you typically only profit if the price goes up, in Spot FX, selling (shorting) is just as easy as buying. You can potentially profit from falling economies as easily as rising ones. What are the risks I should be aware of? Trading Spot FX involves significant risk, primarily due to leverage. Leverage Risk: While leverage magnifies gains, it also magnifies losses. A small market movement against your position can result in the loss of a significant portion of your capital. Volatility Risk: Currencies can be highly volatile. Geopolitical events or sudden economic announcements can cause rapid price spikes (whipsaws) that may trigger stop-loss orders. Counterparty Risk: In the OTC market, you rely on the financial stability of your broker. This is why trading with a regulated entity like PhillipCapital DIFC (regulated by the DFSA) is paramount for the safety of your funds. Risk management is key to longevity in trading Visit our Risk Disclosure page to understand how we protect our clients. Learn more Why trade Spot FX with PhillipCapital DIFC? Choosing the right broker is as important as choosing the right currency pair. PhillipCapital DIFC offers a distinct advantage for traders in the UAE and MENA region: Regulatory Trust: We are regulated by the Dubai Financial Services Authority (DFSA), providing you with a secure, transparent, and compliant trading environment. Global Footprint: As part of the PhillipCapital Group (Singapore), we have over 50 years of experience in global financial markets. Institutional-Grade Platforms: We provide access to robust trading platforms that offer low latency execution—essential for Spot FX trading. Local Support:

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Buy and Hold vs. Active Trading

Leave a Comment / Uncategorized, Beginner, Trading Strategies /

Buy and Hold vs. Trading Understanding the difference in mindset and tax implications The Tortoise or the Hare? Deciding Between Buy and Hold vs. Active Trading When you finally decide to put your money to work in the financial markets, you are immediately faced with a fork in the road. Do you buy a stock, lock it away, and forget about it for ten years? or do you watch the charts like a hawk, looking for quick profits from daily price movements? Neither path is “wrong,” but they are completely different disciplines. It is a bit like the difference between being a landlord collecting rent (investing) and a house flipper selling properties for a markup (trading). At PhillipCapital DIFC, we see clients succeed with both approaches, but usually, the ones who fail are the ones who don’t know which game they are playing. Let’s break down the differences in mindset, lifestyle, and the all-important tax implications for investors here in the UAE. What is the fundamental difference in how I should view the market for these two strategies? The biggest difference isn’t the charts you look at; it’s your relationship with “value” versus “price.” If you adopt a Buy and Hold strategy, you are essentially thinking like a business owner. You don’t care much if the stock price drops 2% tomorrow. You care about whether the company is profitable, has good management, and will be bigger in five years than it is today. You are banking on the compound growth of the company itself. You are looking to capture the long-term upward drift of the economy. Trading, on the other hand, is a relationship with price action and volatility. As a trader, you might not care if a company is “good” or “bad.” You only care if the price is moving. You are looking for inefficiencies—moments where a stock is temporarily overbought or oversold—and you capitalize on that snap-back. A trader can make money even when the market is crashing (by short selling), whereas a buy-and-hold investor usually needs the market to go up to profit. Not sure which asset class suits your style? Explore our full range of Global Products & Services to see where you fit in. View All Products How does the “Mindset” differ? Do I need a specific personality type for each? Absolutely. This is where most people trip up—they try to trade with an investor’s personality, or invest with a trader’s impatience. The Trading Mindset requires: Emotional Iron: You will take losses. It’s unavoidable. A trader has to treat a loss like a business expense—just the cost of buying inventory. If you panic when you see red on your screen, trading will be psychologically exhausting for you. Discipline and Agility: You need to stick to a strict set of rules. If a trade goes wrong, you cut it immediately. You can’t “hope” it comes back. Hope is a dangerous emotion in trading. High Focus: This is active work. You are analyzing technical indicators, news flow, and volume data. The Buy and Hold Mindset requires: Patience (The “Boring” Factor): Doing nothing is harder than it looks. When the market drops 20% in a correction, your brain will scream at you to sell. The buy-and-hold mindset requires you to ignore the noise and trust your original thesis. Optimism: You generally need to believe that the global economy will improve over time. Detachment: You shouldn’t be checking your portfolio app every hour. Once a month is plenty. Living in the UAE, how do the tax implications differ between Trading and Long-Term Investing? This is the “golden question” for our clients in Dubai and the wider UAE. We are in a unique position compared to investors in Europe or the US.In many Western jurisdictions, the taxman treats “Capital Gains” (long-term holding) very differently from “Income” (active trading). Usually, active traders get taxed at a much higher rate because their profits are viewed as a salary.  However, for individual investors in the UAE: Currently, the UAE does not levy personal income tax on individuals for earnings derived from investing in stocks, bonds, or mutual funds in their personal capacity. Whether you buy a stock and sell it ten minutes later (Trading) or ten years later (Buy and Hold), there is generally 0% Capital Gains Tax for individuals. This is a massive advantage. It means your “compounding” happens faster because you aren’t paying a 20% or 30% cut to the government every time you close a winning position. A Note on “Business Activity”: While personal investment is tax-free, if you are trading with such high frequency and volume that it resembles a commercial business operation (managing others’ money or proprietary trading as a corporation), you might fall under the Corporate Tax regime. However, for many retail clients managing their own savings, the tax efficiency remains one of the biggest perks of living here. Note: Always consult with a qualified tax advisor in the UAE to understand your specific liability, especially if you hold US citizenship or are a tax resident of another country. Ready to take advantage of the UAE’s tax-efficient environment? Open Your Account Today Open an account Which strategy is riskier? The standard answer is “Trading is riskier,” but the real answer is nuanced. Trading Risk: The risk here is volatility and leverage. Traders often use margin (borrowed money) to amplify returns. If you use leverage incorrectly, a small move against you can wipe out your account. The risk is immediate and sharp. Buy and Hold Risk: The risk here is time and opportunity cost. If you buy a stock and hold it for 10 years, and that company goes bankrupt (think Kodak or Nokia), you have lost 10 years of capital usage. You can’t just “set it and forget it” blindly; you still need to ensure the company remains fundamentally strong. However, historically speaking, a diversified Buy and Hold portfolio (like holding a global index tracker) has a much higher success rate for the average person than

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Introduction to Structured Products

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Introduction to Structured Products An Introduction to Structured Products for a Resilient Portfolio In today’s dynamic financial landscape, traditional asset classes like equities and bonds are essential, but they may not always align perfectly with every investor’s specific risk appetite or return objectives. This is where Structured Products come into play. Often regarded as the “bridge” between traditional investing and modern financial engineering, structured products offer a way to customize your market exposure. At Phillip Capital DIFC, we believe that sophisticated investment tools should be accessible and transparent. Whether you are looking to protect your capital or enhance your yield in a flat market, understanding structured products is the first step toward a more resilient portfolio. What exactly are Structured Products? At its core, a structured product is a pre-packaged investment strategy based on a single security, a basket of securities, options, indices, commodities, debt issuance, or foreign currencies. Think of it as a “hybrid” instrument. It typically combines two main components: A Bond Component (Capital Protection): This portion is designed to protect your initial investment (principal) and pays a return similar to a bond. A Derivative Component (Growth Potential): This part is linked to an underlying asset—such as the S&P 500, Gold, or a specific stock like Apple. It determines the potential upside or “bonus” return you might receive. Unlike buying a stock directly, where your return is 1:1 with the market’s movement, a structured product changes the payoff profile. You might sacrifice some upside potential in exchange for downside protection, or vice versa. They are bespoke instruments created to meet specific needs that standard financial instruments cannot. How do Structured Products work in practice? Structured products work by defining a clear set of rules for your return on investment (ROI) right at the beginning. These rules usually involve a maturity date (when the product ends) and specific market scenarios. For example, let’s look at a common type called a “Capital Protected Note”: The Scenario: You invest $100,000 for 3 years linked to the performance of the FTSE 100 index. The Terms: The product offers 100% capital protection and 80% participation in the index’s growth. The Outcome (Scenario A – Market Rises): If the FTSE 100 rises by 20% over 3 years, you get your $100,000 back plus a return based on that growth (e.g., $16,000 profit). The Outcome (Scenario B – Market Falls): If the market crashes by 30%, you still receive your original $100,000 back at maturity (subject to issuer credit risk), losing only the opportunity cost of the money. This “defined outcome” feature is what makes them attractive for strategic planning. You know the best-case and worst-case scenarios before you invest a single dirham. Who are Structured Products suitable for? Structured products are not a “one-size-fits-all” solution. They are generally best suited for: Sophisticated Investors: Those who understand that these are fixed-term investments and are comfortable with the liquidity constraints (meaning you typically hold them until maturity). Investors Seeking Tailored Risk: If you are nervous about a market correction but still want to stay invested, a structured note with a “downside barrier” can offer peace of mind. Yield Hunters: In a low-interest-rate environment, certain structured products (like Reverse Convertibles) can offer significantly higher distinct coupons compared to traditional bonds, provided you are willing to accept some risk to your capital. At Phillip Capital DIFC, we often categorize these clients into those seeking Growth, Income Need help defining your investment approach? Learn More About Our Wealth Management Solutions Learn More What are the primary benefits of adding them to my portfolio? The primary advantage is Customization. Standard equities force you to accept market risk as it is. Structured products allow you to reshape that risk. Market Access: They can provide exposure to hard-to-reach asset classes, such as foreign indices or specific commodities, without needing to buy the physical asset or open multiple international brokerage accounts. Defined Returns: In volatile markets, the certainty of the formula is valuable. You don’t need to guess “how much” you will make; the formula tells you exactly what you earn if the market hits X or Y level. Positive Returns in Flat Markets: Some structures, like “Phoenix Autocalls,” can pay a high coupon even if the market remains flat or falls slightly, something a traditional stock buy-and-hold strategy cannot do. Important Considerations: Understanding the specific risks of Structured Products. While structured products offer protection, they are not risk-free. Key risks include: Credit Risk: This is the most overlooked risk. You are essentially lending money to the financial institution (the Issuer) that created the product. If that bank goes bankrupt, you could lose your entire investment, even if the “Capital Protection” clause was in place. This is why Phillip Capital carefully selects issuers with strong credit ratings. Liquidity Risk: These are designed to be held to maturity. If you need to sell early, you may have to sell at a significant discount to the current value. Market Risk (The “Barrier”): Some products offer “conditional” protection. For example, your capital is safe unless the market falls by more than 40%. If it falls 41%, you might lose money just like a direct equity holder. Dividends: Generally, by investing in a structured note linked to an index, you forego the dividends that the companies in that index would pay. Balancing risk and reward needs expert guidance. Discover how we tailor notes to your specific needs. Contact Now How does Phillip Capital DIFC approach Structured Products for UAE investors? As a firm regulated by the DFSA (Dubai Financial Services Authority), we adhere to strict standards of conduct. We do not view structured products as a “sales pitch” but as a strategic component of a diversified portfolio. We leverage our global network (with roots in Singapore since 1975) to source competitive pricing from top-tier global investment banks. Because we act as a broker and advisor, we can shop around to find the structure that offers the best terms for you, rather than pushing a proprietary product

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Nov 28 – Daily Market Updates

Leave a Comment / Uncategorized, Daily Market Updates, Market Updates /

Nov 28 – Daily Market Updates Markets Daily: Cautious Tone as Liquidity Disruption, Month-End Flows Shape Trade Overview Global markets are treading carefully into the final stretch of the month. US equity futures edged higher in early trade, European benchmarks were little changed to slightly lower, the dollar firmed modestly, and the US 10-year Treasury yield hovered near the 4% area. Crude continued to soften ahead of a closely watched producer group meeting this weekend, while gold was steady. Turnover and price discovery were complicated by a multi-hour interruption at a major US derivatives venue overnight, and the holiday-shortened US session typically concentrates activity into narrower windows, magnifying moves. Key takeaways Liquidity hiccup: A technical problem at a leading US futures and options platform paused trading for several hours, disrupting hedging, cross-asset signals, and month-end roll activity. Expect some catch-up volatility as trading normalizes and participants reestablish pricing across equity, rates, FX, and commodities. Equities mixed: US futures were slightly positive and pointing to a muted open, while European stocks were broadly flat with mild weakness. After a choppy November, major US indices head into month-end with modest changes on the month and tighter intraday ranges of late. Bonds and dollar: Treasury yields were little changed, with the long end anchored near recent levels. The dollar strengthened slightly versus major peers as risk appetite cooled and traders reduced exposure into the weekend. Energy: Oil extended its multi-week slide as markets await policy signals from key producers. Ongoing concerns around supply discipline and uneven demand have weighed on prices into month-end. China watch: Renewed stress in the mainland property sector pressured related shares and credit after a large developer sought to push out a local bond repayment. Sentiment remains cautious as investors assess potential policy responses and funding conditions. What’s moving Exchanges and market plumbing: Exchange operators and market infrastructure names may see attention after the overnight outage highlighted their central role in global price discovery and risk management. Travel and airlines: US carriers are in focus following temporary air traffic stoppages at several busy airports during the peak holiday period. Operational updates and demand commentary will be watched. European consumer and luxury: Select stocks moved on broker rating changes and outlook revisions, with mixed performance across fashion and discretionary names. Cannabis: A notable producer dropped after announcing a reverse split, underscoring continued volatility across the sector. Macro and market context Month-end mechanics: Position rolls and portfolio rebalancing can amplify intraday swings, especially following a period of interrupted futures trading and a shortened US session. Liquidity pockets may be uneven; spreads can widen unexpectedly. Volatility picture: Headline volatility remains subdued versus earlier in the year, but event risk is elevated into the weekend given producer policy meetings, ongoing geopolitical developments, and potential residual effects from the exchange disruption. Flows and breadth: While a handful of large-cap growth names continue to dominate index-level performance, breadth has been variable. Any incremental shift in rates or energy can quickly rotate leadership across sectors. Looking ahead Data and policy: The upcoming calendar features manufacturing surveys, labor market indicators, and inflation updates that will inform the interest-rate path and growth outlook into year-end. Earnings and guidance: With most of the reporting season behind us, pre-announcements and guidance tweaks may drive stock-specific moves. Watch commentary on inventories, pricing power, and capex—particularly in energy, industrials, and consumer. Year-end positioning: Many investors are balancing participation in any late-year rally with capital preservation. Expect demand for high-quality balance sheets, resilient cash flows, and visibility on 2025 earnings. Trading considerations Expect patchy liquidity across time zones after the futures outage and during the abbreviated US session; use limit orders and be mindful of wider bid-ask spreads. For hedgers rolling positions, review execution windows and consider staging orders to mitigate slippage. Cross-asset signals may be less reliable intraday; confirm levels across cash, futures, and ETFs where possible. This material is provided for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security or strategy. Markets are volatile; 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. Nov 27 – Daily Market Updates Admin PhillipCapitalDIFCNovember 27, 2025 Nov 27 – Daily Market Updates Market overview Global markets… Read More Nov 26 – Daily Market Updates Admin PhillipCapitalDIFCNovember 26, 2025 Nov 26 – Daily Market Updates Market snapshot (as of… Read More Nov 25 – Daily Market Updates Admin PhillipCapitalDIFCNovember 25, 2025 Nov 25 – Daily Market Updates Market snapshot (as of… Read More Nov 24 – Daily Market Updates Admin PhillipCapitalDIFCNovember 24, 2025 Nov 24 – Daily Market Updates Market snapshot (as of… Read More Weekly Global Market News – Nov 24 Admin PhillipCapitalDIFCNovember 24, 2025 Weekly Global market Updates Nov 24 Week Ahead Playbook: Budgets,… Read More

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Introduction to Stock Markets

Leave a Comment / Deliverable Equities, Educational Blogs, Stock Market Basics, Uncategorized /

Master the Basics: An Introduction to Stock Markets and Deliverable Equities Introduction: The Engine of Global Wealth The stock market is often perceived as unpredictable and fast-moving, but for a disciplined investor, it offers something much more reliable. With a thoughtful, long-term approach, the market becomes a strong platform for preserving wealth and achieving steady financial growth At its core, the stock market is a marketplace where buyers and sellers trade shares of publicly listed companies. When you participate in this market, you aren’t just moving money around; you are buying a stake in the global economy. For investors in the UAE and the wider region, understanding the mechanics of these markets is the first step toward financial independence. This guide will demystify the concept of Deliverable Equities, explaining why owning the underlying asset is a cornerstone of a solid investment portfolio. What Are Deliverable Equities? When financial professionals speak of “Deliverable Equities” (often referred to as Cash Equities), they are referring to the traditional form of stock investing. Unlike Contracts for Difference (CFDs) or other derivative products where you merely speculate on the price movement of a stock without owning it, Deliverable Equities involve the actual purchase and transfer of ownership. When you buy a deliverable equity through a regulated broker like Phillip Capital DIFC: True Ownership: You become a shareholder of the company. The shares are electronically delivered to your custody account. Asset Security: You hold a tangible financial asset that does not expire. You can hold it for days, years, or decades. No Leverage Costs: Typically, you pay the full value of the stock upfront. This means you do not incur overnight financing fees or interest charges associated with leveraged trading, making it ideal for long-term holding. Why does this matter? For an investor focused on building a legacy, deliverable equities offer stability. You are not betting against the house; you are partnering with the company. The “Sizes” of Companies: Understanding Market Capitalization Before you buy a stock, it is crucial to understand that not all companies carry the same risk profile. In the stock market, the size of a company is measured by “Market Capitalization” (Market Cap). This is calculated by multiplying the current share price by the total number of outstanding shares. Large-Cap (The Giants): These are massive, stable companies (like Apple in the US, or Emaar in the UAE). They are generally safer and often pay regular dividends, though their growth might be slower compared to startups. Mid-Cap (The Growers): Medium-sized companies that are in a phase of expansion. They offer higher growth potential than giants but come with slightly more volatility. Small-Cap (The Risky Bets): Smaller or newer companies. These offer the highest potential for massive returns (sometimes 10x growth) but carry the highest risk of failure. Pro Tip: A balanced “Deliverable Equity” portfolio often holds a mix of these categories to balance safety with growth potential. The Three Pillars of Profit in Deliverable Equities Why do millions of people choose to lock their capital into the stock market? The returns on deliverable equities generally come from three distinct sources:1. Capital AppreciationThis is the most common goal. If you buy shares of a technology company at $100 and the company innovates, grows its revenue, and expands its market share, the stock price may rise to $150. The $50 difference represents your capital appreciation. It is the reward for identifying value early. 2. Dividend IncomeMany established companies distribute a portion of their profits back to shareholders. This is called a dividend. By holding deliverable equities, you are entitled to these payments. For many investors in the UAE, building a portfolio of high-dividend yield stocks is a strategy to generate passive income that rivals real estate rental yields, without the hassle of property management.3. Voting RightsBecause deliverable equities represent ownership, they often come with voting rights. This allows you to vote on corporate matters, such as board appointments or mergers, giving you a voice in the company’s future. How the Stock Market Works: Mechanics & Indices The stock market functions as a vast network of exchanges. A company launches an Initial Public Offering (IPO) to raise capital, selling part of itself to the public. Once listed, these shares float on the secondary market where supply and demand dictate the price. But how do we know if “the market” is doing well? Investors use Indices to track the health of a specific region or sector. An index is a basket of stocks that represents a market. S&P 500: Tracks the 500 largest companies in the USA. DFM General Index: Tracks the performance of the Dubai Financial Market. Tadawul All Share (TASI): The main index for the Saudi Exchange. When you buy a specific stock, you are usually trying to pick a company that you believe will perform better than these average indices. The Mechanics of Execution: Market vs. Limit Orders Entering the stock market requires precision. When you access the POEMS (AE) platform or speak to our dealing desk, you are interacting with the “Order Book.” Understanding how to navigate this ensures you get the value you expect. There are two primary ways to enter a position: Market Order: Immediate Liquidity A Market Order creates a “Taker” event. You are taking the current liquidity available on the exchange. Pros: Guaranteed execution. You will definitely own the stock instantly. Cons: In volatile markets, the price you see on the screen might change slightly by the millisecond the trade executes (known as “Slippage”). Limit Order: Price Control A Limit Order creates a “Maker” event. You are adding liquidity to the order book at a specific price point. Pros: Zero slippage. You never pay more than the price you set. Cons: No guarantee of execution. If the market does not reach your limit price, your order will remain unfilled. Which should you use? Most long-term investors use Limit Orders to ensure they enter positions at a fair valuation, whereas active traders often use Market Orders to catch rapid

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Introduction to the Forex Market

Leave a Comment / Forex Basics, Educational Blogs, Spot FX and CFDs, Uncategorized /

Introduction to the Forex Market : Your Gateway to Global Currency & CFD trading The foreign exchange market, commonly known as Forex or FX, is the largest and most liquid financial market in the world. For investors in the UAE and beyond, it represents a dynamic landscape of opportunity, allowing participants to trade currencies from practically every corner of the globe. At Phillip Capital DIFC, we turn market understanding into your strategic advantage for portfolio growth and risk management. Whether you are looking to diversify your portfolio or hedge against currency risk, understanding the fundamentals is the first step. What exactly is the Forex market and why is it so significant? The Forex market is a decentralized global marketplace where all the world’s currencies are traded. Unlike the stock market, which operates on centralized exchanges like the NYSE or DFM, the Forex market is an Over-the-Counter (OTC) market. This means trades take place directly between two parties via an electronic network of banks, institutions, and individual traders. Its significance lies in its sheer volume. With an estimated daily trading volume exceeding $6 trillion, it dwarfs other financial markets. This liquidity ensures that traders can enter and exit positions with ease, even in large sizes, without significantly disturbing the market price. The Forex market is the backbone of international trade and investment, facilitating currency conversion for everything from tourism to multi-billion dollar corporate mergers. How does a Forex trade actually work? In Forex, currencies are always traded in pairs. When you trade, you are simultaneously buying one currency and selling another. These pairs are quoted with a “Base” currency (the first one) and a “Quote” currency (the second one). For example, if you are trading the EUR/USD pair: The Euro (EUR) is the Base currency. The US Dollar (USD) is the Quote currency. If you believe the Euro will strengthen against the US Dollar, you “Buy” or “Go Long” on the pair. If you think the Euro will weaken, you “Sell” or “Go Short.” The profit or loss is determined by the difference in the exchange rate between when you open the trade and when you close it. Prices are influenced by geopolitical stability, interest rates, and Ready to trade major, minor, and exotic pairs? Explore our robust Spot FX & CFDs Trading Services and access the market 24/5 with competitive spreads. Explore Spot FX & CFD Who are the main participants in the Forex ecosystem? The Forex market is a multi-tiered ecosystem with various players operating at different levels: Central Banks: Institutions like the Federal Reserve or the Central Bank of the UAE play a massive role by adjusting interest rates and managing currency reserves to stabilize their national economy. Commercial Banks: The largest volume comes from the interbank market, where major global banks trade with each other to facilitate client orders and their own proprietary trading. Institutional Investors: Hedge funds, mutual funds, and large corporations use Forex to hedge their exposure to foreign markets or to speculate on market trends. Retail Traders: This is where you fit in. Thanks to modern technology and brokers like Phillip Capital DIFC, individual investors can now access the same markets as the big banks, trading smaller sizes via online platforms. What is the difference between “Spot FX” and “Currency Futures”? This is a critical distinction for sophisticated traders. Spot FX: This is the immediate exchange of currencies at the current market price (the “spot” price). When you trade Spot FX (often via CFDs), you are speculating on the price movement without necessarily taking physical delivery of the currency. It is highly flexible and suited for short-to-medium-term strategies. Currency Futures: These are standardized contracts to buy or sell a specific amount of a currency at a predetermined price on a future date. These are traded on regulated exchanges (like DGCX or CME). Futures are transparent and often used by institutions for hedging, but they require a commitment to contract expiration dates. At Phillip Capital DIFC, we are unique in offering access to both Spot FX/CFDs and Exchange-Traded Futures, giving you the freedom to choose the instrument that fits your strategy. Prefer exchange-traded instruments? Trade Futures & Options on regulated exchanges with top-tier support. Learn More CFDs vs. Futures: Why do many professional traders prefer the ‘OTC’ route? A CFD (Contract for Difference) can be best understood as “Futures on the OTC (Over-the-Counter) Market.” While traditional Futures are traded on centralized exchanges, CFDs allow you to speculate on the price movements of an underlying asset without the rigidity of exchange mechanics. For sophisticated investors, CFDs function as a more flexible and cost-efficient alternative to standard futures contracts. At Phillip Capital DIFC, professional traders often choose CFDs to leverage four distinct advantages: Lesser Margin for Professional Clients: Exchange-traded futures have rigid margin requirements set by the exchange clearinghouse. CFDs, however, offer greater capital efficiency. Professional Clients (as classified under DFSA guidelines) can access significantly reduced margin requirements, allowing you to control larger positions with less upfront capital compared to standard futures. Lower Transaction Costs: Trading on a formal exchange involves a stack of overheads: exchange membership fees, clearing fees, and NFA/regulatory fees. Because CFDs are traded OTC (directly with the broker), these “middleman” exchange costs are eliminated, resulting in a leaner, more profitable cost structure for high-volume traders. Free Market Data: Accessing live price feeds for futures on exchanges like the CME or DGCX usually requires purchasing monthly data subscriptions (Level 1 or Level 2 data). With our CFD offering, institutional-grade live streaming market data is provided at no extra cost, removing a frustrating fixed cost from your P&L. Small Size & Flexible Execution: Standard Futures contracts come in fixed, large denominations (e.g., 1 standard lot). This lack of granularity makes precise hedging difficult. CFDs solve this by allowing small size execution. You can trade fractionally to match your exact risk exposure, rather than being forced to round up to the nearest standard contract. Maximize your capital efficiency Check your eligibility for better margins. Contact

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Nov 26 – Daily Market Updates

Leave a Comment / Daily Market Updates, Market Updates, Uncategorized /

Nov 26 – Daily Market Updates Market snapshot (as of 06:40 am ET) S&P 500 futures: 6,803 (+0.32%) Nasdaq 100 futures: 25,206.25 (+0.48%) US 10-year Treasury yield: 4.00% (+0.6 bps) Dollar Spot Index: 1,222.78 (-0.02%) GBP/USD: 1.32 (-0.09%) The big picture US equity futures are pointing higher, extending a multi-session upswing as investors lean into a softer-rate narrative and calmer macro conditions into the holiday period. Treasury yields are holding near 4% at the long end, the dollar is a touch softer, and risk appetite remains constructive with large-cap tech providing a backbone to sentiment. Liquidity is thinning ahead of the US market holiday, which can amplify intraday moves. What’s driving markets Policy path: Markets are increasingly discounting the prospect of rate relief over the coming months, with traders penciling in multiple cuts through 2026. Recent public remarks from policymakers have acknowledged cooling in parts of the labor market and tighter financial conditions, supporting the case for a gradual pivot. Debate remains within the central bank, so the near-term cadence of easing is still conditional on incoming inflation and employment data. Earnings tone: The results calendar is winding down, but updates from select hardware, software, and consumer names continue to shape sector leadership. Guidance sensitivity is high: companies tied to AI infrastructure, enterprise IT spending, and US consumer demand remain in focus. Global policy watch: In the UK, a closely watched fiscal update is due, with gilt markets attentive to issuance signals and the credibility of the medium-term framework. Investors remember the turbulence from prior policy missteps and will scrutinize funding needs alongside growth assumptions. China property overhang: Renewed stress among large developers underscores a still-fragile recovery in Chinese real estate. Any incremental support measures will be assessed for spillovers to credit markets, commodities, and regional growth. Equities US: Futures suggest a positive open led by growth and tech, with cyclicals tracking higher on improved sentiment. Within tech, AI-linked capital expenditure remains a key narrative, though leadership is rotating as investors reassess competitive dynamics in chips, software, and cloud services. Europe: Stocks are mixed to firmer, with defensives steady and rate-sensitive sectors catching a bid on stable yields. UK domestics are poised for headline-driven moves around the budget. Sectors to watch today: Semiconductors and AI infrastructure (capex visibility, supply dynamics) Enterprise software (pipeline commentary and margins) Consumer discretionary and specialty retail (holiday season read-throughs) Airlines and travel (record holiday passenger volumes, capacity/ops updates) Rates and credit US Treasuries: The curve is little changed, with the 10-year hovering around 4%. A softer dollar and stable breakevens reflect a market comfortable with disinflation progress, but thin pre-holiday liquidity may exaggerate moves. Gilts: Modestly weaker into the UK budget as investors await details on borrowing, growth, and issuance. Term premium and supply outlook remain the swing factors. Credit: Primary issuance is slowing into the holiday. Spreads are broadly stable; higher-quality paper retains a funding cost advantage as markets price an easier policy path next year. FX and commodities FX: The dollar is fractionally lower as rate-cut expectations firm. Sterling is slightly softer ahead of UK fiscal headlines. Watch EUR and GBP for post-announcement volatility. Commodities: Precious metals are firmer on the softer-dollar backdrop and steady real yields. Energy is range-bound with attention on supply discipline and year-end demand. Today’s setup US calendar: A lighter docket into the holiday; liquidity likely to taper through the session. US markets are closed Thursday for Thanksgiving and reopen Friday on an abbreviated schedule. Event risk: UK budget details and issuance guidance; any surprise in global policy commentary or major corporate pre-announcements. Market mechanics: Seasonal factors and reduced depth can widen bid-ask spreads; consider execution strategies accordingly. How to position tactically (not investment advice) Maintain flexibility: With liquidity thin and news-driven swings likely, staggered orders and defined risk parameters can help manage slippage. Watch leadership breadth: Continued participation beyond mega-cap tech would strengthen the durability of the rally; monitor cyclicals and small/mid-caps for confirmation. Data dependency: Near-term moves hinge on the next prints for inflation and employment; keep an eye on revisions as they’ve been market-moving in recent months. Key takeaways Risk tone is constructive into the holiday with futures higher, yields steady, and the dollar slightly softer. Markets are leaning toward a gentler policy path, but internal policy debate and data dependency argue for measured expectations. UK fiscal announcements and China property headlines remain the main global swing factors today. Important information This publication is for informational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security or financial instrument. Market levels are indicative and subject to change. Consider your objectives, financial situation, and risk tolerance before making any 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. All Posts Market Updates Nov 26 – Daily Market Updates November 26, 2025 Nov 26 – Daily

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Essentials of Derivatives Trading

Leave a Comment / Derivatives Basics, Educational Blogs, Exchange Traded Derivatives, Uncategorized /

Mastering Market Moves: The Essentials of Derivatives Trading The financial world is vast, and for many investors, “derivatives” can sound like a complex buzzword reserved for Wall Street elites. However, derivatives are powerful tools that, when understood, can help manage risk and uncover new opportunities in global markets. At PhillipCapital DIFC, we believe in empowering our clients with knowledge. Whether you are an institutional investor, a family office, or a retail trader looking to diversify, this guide breaks down the basics of derivatives. What exactly is a financial “derivative,” and why is it called that? A derivative is a financial contract between two or more parties that derives its value from an underlying asset, group of assets, or benchmark. Think of it as a side agreement about the future price of something else. This “underlying” asset can be almost anything: a stock (like Apple or Reliance Industries), a commodity (like Gold or Crude Oil), a currency pair (like USD/AED), or even an interest rate. It is called a “derivative” because the instrument itself has no intrinsic value; its worth is entirely derived from the fluctuations of that underlying asset. If the price of gold goes up, the value of a gold derivative will change accordingly, depending on the type of contract you hold. Investors typically use them for two main reasons: Hedging (protecting against price drops) or Speculation (betting on price movements to make a profit). What are the different types of derivatives available to traders? While there are many complex variations, the derivatives market is primarily built on four pillars. At PhillipCapital DIFC, we specialize in providing access to the most liquid and popular of these: Futures Contracts: These are standardized agreements to buy or sell an asset at a predetermined price at a specific time in the future. They are traded on exchanges. For example, you might buy a crude oil future contract expecting the price to rise next month. Options: These contracts give you the right, but not the obligation, to buy (Call Option) or sell (Put Option) an asset at a specific price. This is great for traders who want to limit their downside risk while keeping the upside open. Forwards: Similar to futures but are private, customizable agreements between two parties (Over-the-Counter). They aren’t traded on exchanges. Swaps: These involve exchanging cash flows with another party. For example, a company might swap a variable interest rate loan for a fixed interest rate to gain stability. Trade on 15+ global exchanges Explore our range of Global Futures & Options to see which instruments fit your portfolio View F&O Markets How can derivatives be used for both risk management (Hedging) and profit generation (Speculation)? These are the two distinct “personalities” of derivative trading. The Hedger (The Insurer): Imagine you are a jeweler holding a large inventory of gold. You are worried the price of gold might drop next week, devaluing your stock. You can “hedge” this risk by selling gold futures contracts. If the market price drops, your inventory loses value, but your short position in the futures market makes a profit, balancing out the loss. It acts like an insurance policy.   The Speculator (The Trader): You don’t own the gold, but you study the charts and believe gold prices are about to skyrocket. You can buy a futures contract or a Call Option. You don’t intend to ever take delivery of the physical gold; you are simply planning to sell the contract later at a higher price to generate a return on your capital. Can I trade global markets like the US S&P 500 or Commodities from Dubai? Absolutely. One of the greatest advantages of derivatives is that they erase geographical borders. You don’t need to be on Wall Street to trade American markets, nor do you need to be in London to trade Brent Crude Oil. Through PhillipCapital DIFC, you gain access to over 15 global exchanges, including the CME (Chicago Mercantile Exchange), ICE (Intercontinental Exchange), and DGCX (Dubai Gold & Commodities Exchange). This means you can trade futures and options on major global indices like the S&P 500, NASDAQ 100, or Dow Jones. This is particularly powerful for portfolio diversification. If you believe the US tech sector is going to rally, you can buy a NASDAQ future. If you want to hedge against rising energy costs, you can trade Oil futures—all from a single, regulated account here in the UAE. What is the benefit of trading derivatives on an exchange like Chicago Mercantile Exchange (CME) versus Over-the-Counter (OTC)? Trading on a regulated exchange like the Chicago Mercantile Exchange (CME) , which PhillipCapital provides access to, offers significantly higher safety and transparency compared to OTC trading. No Counterparty Risk: In an OTC trade, if the other guy goes bankrupt, you might not get paid. On an exchange, the Clearing House guarantees the trade. Liquidity: Exchanges bring together thousands of buyers and sellers, making it easier to enter and exit positions instantly. Price Transparency: You can see exactly what price the market is trading at in real-time, ensuring you get a fair deal. Is derivatives trading risky? How can I manage it? It is important to be transparent: yes, derivatives involve risk, primarily due to leverage. Leverage allows you to control a large contract value with a relatively small amount of capital (margin). While this can magnify your profits, it can also magnify your losses if the market moves against you. However, risk can be managed. Successful traders use “Stop-Loss” orders to automatically exit a bad trade before losses spiral. They also limit the amount of capital they risk on any single trade. At PhillipCapital DIFC, we provide institutional-grade tools and risk management support to help you navigate these waters safely. We believe in “educated trading”—understanding the instrument before you invest. 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

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Nov 25 – Daily Market Updates

Leave a Comment / Daily Market Updates, Market Updates, Uncategorized /

Nov 25 – Daily Market Updates Market snapshot (as of 6:33 a.m. ET) S&P 500 futures: 6,710.25 (-0.16%) Nasdaq 100 futures: 24,871.25 (-0.31%) US 10-year Treasury yield: 4.029% (+0.6 bps) Dollar Spot Index: 1,225.87 (-0.07%) Bitcoin: 87,359.7 (-1.58%) Five things to know 1) Stocks take a breather: US equity futures eased following a tech-led run-up as traders brace for fresh reads on the economy. Retail sales and producer prices due today will help shape expectations for a potential Fed rate cut next month. 2) AI hardware rivalry intensifies: The market’s AI leaders are no longer moving in lockstep. Google and Nvidia are in focus as investors assess whether Google’s in-house chips can provide a credible alternative to Nvidia’s dominance in AI compute. 3) SoftBank under pressure: Shares fell sharply for a second session as investors weighed whether a stronger push from Google’s Gemini could dent OpenAI’s momentum—an important exposure for SoftBank’s portfolio. 4) Crypto’s selling pressure cools: The recent wave of Bitcoin liquidation appears to be slowing, stoking hopes the drawdown is stabilizing. The token is hovering around the $88,000 mark. 5) Geopolitics on the tape: President Donald Trump held calls with leaders in China and Japan amid heightened tension over Taiwan. Equities in Hong Kong and mainland China welcomed signs of engagement. Context matters: Why GPUs won: Nvidia’s graphics processors, built for parallel workloads, proved ideal for training large AI models. Nvidia then layered a deep software ecosystem on top, creating a powerful moat. Why TPUs are catching on: Google’s seventh-generation TPUs reportedly deliver stronger performance-per-watt and improved efficiency for certain AI tasks, especially at hyperscale, while reducing energy draw—a growing cost center for AI operators. What this isn’t: An overnight replacement. Even Google isn’t attempting to phase out GPUs entirely. The AI buildout is expanding so quickly that many players will coexist, but any real customer diversification is enough to shake confidence in a single-supplier narrative. Investor takeaway: The AI stack is evolving rapidly—from chips to models to applications. Leadership can rotate within segments even as AI remains the primary engine behind US equity strength. If you believe the cycle continues, be careful exiting the winners too soon, but watch for signs of spend rationalization and second-order beneficiaries (power, networking, memory, and cooling). On the move Zoom +4.4% premarket: Revenue topped expectations, highlighting traction across its enterprise toolkit beyond video conferencing. SanDisk +2.3%: Set to enter the S&P 500, replacing Interpublic, pending index rebalancing. Spotify +3.3%: Reported plans to lift US subscription prices in Q1, signaling continued pricing power. Alibaba ADRs +4.2%: Beat on revenue as China’s AI and cloud investments underpin growth. On deck before the bell: Abercrombie & Fitch, Best Buy, Dick’s Sporting Goods, Kohl’s. After the close: Autodesk, Dell Technologies, HP Inc., Workday, Zscaler. Copper: the prize everyone wants Copper has rallied roughly 23% year-to-date, with supply expected to run tight for years. That backdrop is driving bold corporate maneuvers: BHP’s last-minute play: The world’s largest miner made a late push to acquire Anglo American in an effort to block Anglo’s roughly $60 billion combination with Teck Resources, according to reporting. Talks fizzled within days, but the move underscored how coveted tier-one copper assets in South America have become. Why the urgency: Structural demand from grid upgrades, EVs, AI data centers, and renewable buildouts is colliding with constrained project pipelines and permitting delays. For diversified miners, scale copper exposure is increasingly strategic. Investor lens: Expect continued M&A noise, premium pricing for quality ore bodies, and focus on capital discipline. Operating execution and jurisdictional risk will be key differentiators. Policy and risk Private markets debate: Apollo’s Marc Rowan pushed back on claims that integrating private assets into retirement and insurance portfolios creates systemic risk, arguing that sensational headlines have outpaced substance. Scrutiny has intensified following distress at a handful of sponsor-backed credits. Geopolitics: Diplomatic outreach between the US, China, and Japan may steady nerves, but Taiwan-related flashpoints remain a key risk for supply chains and Asia equities. Crypto corner Flows: About $6 billion has exited global crypto exchange-traded products so far this month—the largest monthly outflow on record since 2018. Composition matters: US spot Bitcoin ETFs have seen redemptions totaling only about 3% of their roughly $110 billion in assets, suggesting stickier capital among core holders despite volatility. Price action: Selling pressure appears to be abating, with BTC near $88,000. Watch liquidity conditions into month-end and any large creation/redemption activity as cues for near-term direction. Day ahead US: Retail sales; Producer Price Index; multiple big-box and specialty retailers report premarket; enterprise software and PC hardware after the close. Rates: 10-year Treasury yield hovering near 4.03%—a pivotal level for equity valuation support. FX/commodities: Softer dollar lends a modest tailwind to risk; copper remains bid on supply tightness. The AI trade is broadening beneath the surface, crypto stress looks to be moderating, and copper’s long-cycle story is pulling strategy and capital into the pit. Near-term, today’s inflation and consumer data will set the tone for the Fed-path narrative and determine whether the recent equity momentum has room to run. Important disclosures This material is for informational purposes only and is not investment advice or a recommendation to buy or sell any security or asset. Market data is subject to change. Past performance is not indicative of future results. Consider your objectives, risk tolerance, and costs before investing. 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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Nov 24 – Daily Market Updates

Leave a Comment / Uncategorized, Daily Market Updates /

Nov 24 – Daily Market Updates Market snapshot (as of 06:27 a.m. ET; levels may have changed) S&P 500 futures: 6,629.5 (+0.14%) Nasdaq 100 futures: 24,390.5 (+0.35%) S. 10-year Treasury yield: 4.048% (-1.5 bps) Dollar Spot Index: 1,226.17 (-0.02%) Bitcoin: 86,004 (-2.24%) Top things to know today Crypto under pressure: After a brief weekend bounce, Bitcoin resumed its slide, slipping back below 86,000 as traders brace for continued outflows and tighter risk management into year-end. Tech stocks, however, are pacing early gains in U.S. futures. China AI app momentum: Alibaba’s revamped Qwen app reportedly drew more than 10 million downloads in the first week after relaunch, supporting its longer-term push to build a mass-market AI assistant. Shares advanced in Hong Kong trading. Europe’s defense trade cools: European defense names retreated on signs of movement in talks seeking Kyiv’s backing for a U.S.-supported peace path, while Ukraine dollar bonds rallied and select Eastern European currencies firmed. Mega-miner recalibration: BHP has stepped back from another tilt at Anglo American, removing a potential obstacle to Anglo’s planned combination with Teck Resources’ steelmaking coal assets in Canada. Retail leadership change: Kohl’s is expected to appoint Michael Bender as permanent CEO as soon as today, according to reports, ahead of Tuesday’s earnings and after a turbulent leadership stretch. Deep dive: Crypto’s latest gut check The crypto market’s hallmark whipsaws are back, but this episode stands out for how quickly positioning has flipped. A multi-week downdraft has erased roughly half a trillion dollars from Bitcoin’s market value from the peak, with altcoins faring worse. Unlike prior crashes driven by systemic failures, today’s stress reflects a broader, more institutional investor base. Key dynamics: ETF flows matter: New spot Bitcoin ETFs have seen sizable redemptions this month, introducing a daily liquidity channel that didn’t exist in past cycles. When momentum falters, those flows can amplify moves. Corporate treasuries reconsider: Token-holding vehicles and crypto-treasury strategies are facing tougher scrutiny as investors question the pure-hold model in a higher-rate, higher-volatility environment. Institutional rebalancing: Professional investors tend to trim winners and control risk into drawdowns, which can pressure prices as volatility spikes. Sentiment reset: A popular “fear and greed” gauge for digital assets fell into deep “extreme fear” territory late last week (low teens on a 0–100 scale), underscoring the capitulation tone. What to watch next: ETF net flows and borrowing rates across major venues Stablecoin market cap trends as a proxy for on-chain liquidity Funding rates and basis for signs of short-term positioning extremes Cross-market risk appetite in tech and high beta equities On the move Baidu rose premarket after a major broker upgraded the stock to overweight, citing improving prospects in cloud and AI services. Alphabet extended last week’s rally as investors price in enthusiasm around the latest Gemini AI releases. Bayer jumped after announcing positive late-stage results for an experimental stroke-prevention therapy. Ubisoft surged after finalizing an investment transaction with Tencent tied to Vantage Studios, the new home for several flagship gaming franchises. The week ahead United States Data catch-up: September retail sales and durable goods orders are due, alongside the Fed’s Beige Book for a read on regional conditions. Thanksgiving: U.S. markets closed Thursday; expect lighter liquidity around the holiday. Earnings highlights: Alibaba, Dell Technologies, Workday, HP, Best Buy, Kohl’s, Dick’s Sporting Goods (Tue); Deere (Wed). Europe/UK UK Autumn Budget (Wed): Chancellor Rachel Reeves presents the fiscal plan amid debate over tax measures and growth priorities. ECB: Financial Stability Review (Wed); minutes and consumer confidence indicators later in the week. Asia-Pacific Japan: 40-year JGB auction (Wed); data Friday include unemployment, industrial production and retail sales. Australia: Monthly CPI (Wed). New Zealand: RBNZ rate decision (Wed). China: Industrial profits (Thu). Retail watch: Holiday hopes meet cautious consumers Recent big-box results suggest the U.S. shopper is turning more value-conscious heading into peak season. Signals include: Price-led traffic: One major discounter leaned harder into price cuts, sacrificing margin as customers trim spending on apparel and home goods. Deferred projects: A leading home improvement chain reduced guidance as higher rates and inflation dampen big-ticket demand. Grocery-led growth: Even the sector’s top performer emphasized strength in food and bargain-seeking among mid-tier households—classic signs of caution. Affluent fatigue: Higher-income consumers, a pillar of 2025 spending resilience, are showing more selectivity. Implications: Sales may rely on sharper promotions, pressuring gross margins. Inventory and markdown discipline will be central to Q4 earnings quality. Watch guidance from electronics and sporting goods retailers this week for read-throughs on discretionary demand. Disclosures : This publication is for information only and is not investment advice or a solicitation to buy or sell any security or digital asset. Markets move quickly; quotes and levels are subject to change. All company names and trademarks belong to their respective owners. Questions or feedback? Contact your brokerage representative or our editorial desk. Have a productive trading day. 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

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