Differences Between Forex And Stock Markets

Forex And Stock Market Differences

The foreign exchange market is also known as FX or forex market.

Trading that takes place between 2 countries with different currencies is the basis for FX market and the background of the trading in this market.

The forex market is over 30 years old, established in the early 1970s and one not based on any  business or company, but mainly on currencies.

Another difference between the stock market and the forex market is the vast trading that occurs on the forex market.

There is millions and millions that are traded daily on the forex market, almost two trillion dollars is traded daily.

The amount is much higher than the money traded on the daily stock market of any country.

The forex market is one that involves governments, banks, financial institutions and those similar types of institutions from other countries.

What is traded, bought and sold on the forex market is something that can easily be liquidated, meaning it can be turned back to cash fast, or often times it is actually going to be cash.

From one currency to another, the availability of cash in the forex market is something that can happen fast for any investor from any country.

Moreover, forex market is global, worldwide whereby stock market is something that takes place only within a country.

The stock market is based on businesses and products within a country, and the forex market takes that a step further to include any country.

The stock market has set business hours.

Generally, this is going to follow the business day, and will be closed on banking holidays and weekends.

The forex market is one that is open generally 24 hours a day because the vast number of countries that are involved in forex trading, buying and selling are located in so many different times zones.

As one regional market is opening, another closes.

This is the continual method of how the forex market trading occurs.

The stock market in any country is going to be based on only that countries currency, say for example the Japanese yen, and the Japanese stock market, or the United States stock market and the dollar.

However, in the forex market, you are involved with many types of countries, and many currencies.

You will find references to a variety of currencies, and this is a big difference between the stock market and the forex market.

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