FAP Turbo

Make Over 90% Winning Trades Now!

Wednesday, April 15, 2009

The Forex Exchange Market vs the Stock Market

By Gugu Martini

The FX market is likewise known as the international foreign exchange marketplace. Dealing can occur between any two countries who have unique types of currency they lay the foundation for the FX market as well as the background for the the dealing in this market The FX market is in excess of thirty years of age, established in the 1970's and is one that is not based on any one business or investing in any one business concern, but the trading and selling of systems of currency.

The difference between the stock market and the forex market is the vast trading that occurs there, a whopping two trillion dollar plus is traded daily. The amount is much higher than the funds traded on any given country's stock market. The foreign exchange market is one of a few that involves governments, banks, financial institutions and another countries counterparts to those institutions.

What is sold, bought and traded on the fx market are commodities that can be liquidated easily this means that they can be turned into cash quickly if it is not already cash The currency of one country to another the cash that is available in the fx market is something that can be arranged for any investor regardless of what country they are in.

The difference between the stock market and the forex market is that the latter is global or worldwide. While the stock market is more country specific and is based on businesses and products that are within a country, the fx market goes further to involves any country.

The business day for the stock market typically which typically follow the traditional business day this means that it is closed on holidays and weekends Whereas the FX market is open 24 hours a day because countries from all over the world are involved in trading selling and buying in a variety of time zones. When one market opens another countries market is closing so 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 Spanish peso and the Spanish stock market. However, in the forex market, because you are involved with different countries and many currencies. You will find references to a variety of currencies, making this the biggest difference between the stock market and the forex market. - 23208

About the Author:

0 Comments:

Post a Comment

Subscribe to Post Comments [Atom]

<< Home