How Stock trading and Forex trading are different
To know about the difference in
between Stock trading and Forex trading it is necessary that we should know
what is Stock and Forex. Let us take a short view about Stock and Forex
Stock Market
Stock market is a place where the
share of companies are bought and sold or we can say that Stock market is a
virtual exchange of securities like as share and debenture of companies. Stock
market is a word that cannot be readily in a sentence. To well understand market
you should have a lot of experience. If you want to earn money from this market
then don’t invest your money without knowledge taking Stock Tips is helpful for you to earn money.
In India, there are two stock
exchanges:
- National Stock Exchange (NSE)
- Bombay Stock Exchange (BSE)
Forex Market
Forex market is also known as Currency market, Foreign
exchange and FX market. Forex maekat is the world largest financial market.
Forex is the international market for the free trade of currencies. Traders
place orders to buy one currency with another currency. For example, a trader
may want to buy Euros with US dollars, and will use the forex market to do
this. There are four major currency pairs that are traded most often in the
foreign exchange market. These include the EUR/USD, USD/JPY, GBP/USD, and
USD/CHF. In forex market It is fact that you don’t earn money without taking
proper tips.
Difference in between and stock trading forex trading
- Complexity of Analysis- Analysis of the forex market is more complex than stock market because in forex market we analysis the each and every movement of the 4 major currency.
- Underlying Instrument- Forex trading is based on currency of the countries while stock trading options is based on stocks.
- Leverage- Forex trading offers a much higher level of leverage than stock options trading, making it more risky that stock options trading in terms of leverage risk. Forex allows you to trade from 50:1 up to 400:1 on your initial margin deposit but Stock market allows up to 50% of your available equity.
- Trading hour- Forex market is open 24 hours a day, 5.5 days a week where as stock market can open from 9:30a.m. to 4:00p.m
- In the stock market there are hundred and thousand kinds of stocks, then choosing stock will be a very difficult matter. But in the Forex market, the currency combination is extremely limited
- In Forex you make all trader online, order executed electronically but in stock you can use a broker or trade online it is depend upon Stock.
Reference-
Author says” TriFid Research is a
privately held company in Indian financial markets operations in Indore. TriFid
research is an Investment Advisory Company that produces and delivers tips and
recommendations for Stock
Tips, Equity Tips,
and Commodity Tips.
