Forex Market vs the Stock market

Wednesday, October 28, 2009

The foreign exchange market has advantages over the stock market. The Forex market is fairly new to the average person but it is no secret it is the biggest financial market in the world.

Like I said before the Foreign Exchange market is the biggest financial market in the world, three times bigger than the Stock market. The Foreign exchange market handles about three trillion dollars daily; that is why trades are done instantly, with no waiting period. On the contrary the Stock market has a waiting period over trades.

Another advantage the Forex market has over the Stock Market is time. The Foreign Exchange market is open 24 hours from Sunday night until Friday night. The Stock market opens daily in the morning and closes daily in the evening. The Forex Market being open continuously means more trades can be made at any time during the day or during the night; it is particularly good for those individuals that work during the day and only have the time to execute trades in the evening.

Trading in the Forex market also means trading with no more than about 12 currencies which are the most popular in the Currency market. The stock market on the other hand has a myriad of options on stocks which means more time has to be spent on research and research. The Stock market having only about a dozen currencies to choose from means one can concentrate on a particular currency instead of having to research for too many in the stock market.

The Foreign Exchange Market clearly has some advantages over the Stock market. It is true that the stock market seems to be more stable and not as volatile as the Forex market so fortunes can be made or can be lost within seconds if one does not take the necessary training to make one is ready to start trading with currencies.

People who read this post also read :



0 comments:

Post a Comment