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DIFFERENCE BETWEEN FOREX AND STOCK MARKET

Difference between stock market and forex market is that stock market deals with buying and selling of shares and forex is related to trading of national currencies. As we all know that currency is one of the most volatile thing, it also makes this market volatile. Because of this factor you can earn more profit in small period of time in forex market whereas in stock market we deal with shares and so the market is more challenging. It is not as volatile as forex market. You can not make a quick profit in stock market. In simple words we can say that investment in stock market is long term investment whereas it is short term in case of forex market.

Another difference in stock market and forex market is that there are listed markets in stock trading where as forex trading has no such market. The trading is done world wide so there are no time barrier in forex market but in stock trading the market is closed after a certain time period. The traders of forex market are spread all over the world.

Stock market is not as liquid as forex market. The reason is same which I have mentioned in the above paragraph. There is no barrier of time and place and day in forex market. You can access your account form any part of the country at any time, where as in stock market you have to trade in the given time period. Another factor is that you need to have total fund in your account to buy or sale a stock but in forex market you don’t require to have entire finds available.

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