So also in stock, in forex trading, the main goal is to gain profit from the difference between the price movement. But there are several things which distinguish the two. Many people assume that forex is more 'sexy'.
Consider the comparison.
Case insensitive
It is not as large as the Forex market in all markets and all kinds. Forex remains the largest seaborne. So that we can say of the Forex market is very liquid. For comparison when you look at the local stock market is 4-7 billion per day-commerce transactions. Is registered in the world of market Forex is $ 3.5 trillion, that is to say 1000 X. You can try, of its own how to calculate 0 (zero)
The market 24 hours nonstop.
The Forex market is the market 24 hours without limit. The broker is open Sunday at 2: 00 pm EST to Friday at 4: 00 a.m. EST with the customer service is 24 / 7 available. With the capacity to serve the U.S. market, commerce, on Asian markets and European, you can customize your own trade. To compare with the example of the local stock market, open only during the working days (from Monday to Friday) at 10 am to 4 pm is to work for them, it is certainly with those for your official schedule (Office) in conflict.
Free to the Commission
Most brokers Forex for free without additional (Commission or transaction costs). Broker taken, the services of the difference between buy / sell. With regard to local stocks, you must be a fee of 0.15% s / d 0.3% of the figures of sale/purchase.
The speed of the order of transaction.
You must have a queue of transaction/command not as soon as possible. Unlike stocks where you have to wait in line for your order can be realized. In the forex is not necessary, very large market which allows the number of buyers and sellers are not unlimited.
However keep in mind that brokers can serve your order as soon as possible with normal market entry, a condition where the extreme price movements (volatile), is broker might delay your order in a moment.
Potential benefit of two-way
Otherwise only the stocks or shares, Forex benefit you both ways, when the market goes down, or when prices / the market moves. In stock is the sale of short term (on a target of profit if the price goes down), has similar effect, but you do can not it only on certain stocks.
Complexity
There are approximately 4,500 shares are listed on the New York Stock Exchange. 3500 other listed on the NASDAQ. About the part where you trade / select be? You have enough time to stay side by side on both of the companies/shares?
In Forex trading, there are dozens of currencies are traded, but most of the market is trading on 4 pairs (EURO, USD, GBP, YEN). No four pairs is much easier, as thousands of monitored shares?
Free speculators
You are often the term stock "Pan", especially in the local stock market. Now, why so a stock was fried? Because there is a person or group of persons / financial institutions, funds, enough, strong you buy a shares continually. What makes this and many traders individual, as if a stock rises, which, for me, too affected stock. At the time where the prices that speculators, as soon as possible to sell the stock speculators (speculators profit) has increased.
What would you say Forex? Quite simply, on how much capital necessary to drive the market 3.5 trillion dollars, silver point which is good.
Maybe only China could because that according to the information with 4 Triliun dollars spent. But what they would risk money just for 1 day of trade.
Rumours
In the camp a rumor or gossip. may be small, to move the price. In particular, if the rumours are sometimes packaged in the form of a professional to answer, as for example the guide your stock and performed on television, radio, etc.... Sometimes, this can drive the price of the shares. However may be in Forex said that it is not possible. If it the rumor, the traders in the ear of the world could extend? You are responsible
Scope of application
In the Forex trade, means that in global financial markets / international around the world, we are linked. If we play local stocks, you should find that the local economy. And local stock prices can never influential movements (IHSG), in the Forex trading (such as the price for the pair EUR/USD). But global and evaluation, which may sometimes be in the Forex market, stocks or shares of a certain country be promoted to the local section. The reason is that current EUR/USD (U.S.-market value below) to see that the US economy has proved this. Usually if the US economy down U.S. down as also actions could then promoted local stocks
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