Foreign exchange market vs the stock market
the forex market
The foreign
exchange market is also known as the FX market, and the forex market. Trading
that takes place between two counties with different currencies is the basis
for the fx market and the background of the trading in this market. The forex
market is over thirty years old, established in the early 1970's. The forex
market is one that is not based on any one business or investing in any one
business, but the trading and selling of currencies.
The difference between the stock market and the forex market
The
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. The
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.
The
difference between the stock market and the forex market is that the forex
market is global, worldwide. The stock market is something that takes place
only within a country. The stock market is based on businesses and products
that are within a country, and the forex market takes that a step further to
include any country.
how the forex market trading occurs.
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 twenty four 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 market is opening, another countries
market is closing. This is the continual method of how the forex market trading
occurs.
The stock market
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.
0 Comments