Thursday, March 8, 2012

Difference Between Forex Market And Stock Market

In Forex Market trading occur between two counties with different currencies is the basis for the currency market and fund trading in this market. The currency market is one that is not based on a business or invest in any business, but trade and sell currencies.


The difference between the stock market and currency market is the huge trade that occurs in the foreign exchange market. There are millions and millions that are traded daily on the Forex market, almost two trillion dollars are traded daily. The amount is much greater than the money traded daily in the stock of any country. The currency market is one that involves governments, banks, financial institutions and similar types of institutions in other countries.


Forex market is global, worldwide. The stock market is something that only takes place within a country. The stock market is based on the companies and products that are within a country and the currency market that takes a step further to include any country.


The stock market has set business hours. In general, this will continue the next business day, and closed bank holidays and weekends. The currency market is one that is open generally twenty four hours a day due to the large number of countries involved in Forex trading, buying and selling are located in areas as different times. In a market is opening, other countries market is closing. This is the continuous method of how trading in the Forex market occurs.


The stock market in any country will be based only on countries in that currency, say, the Japanese yen and the Japanese stock market or the stock market and the U.S. dollar. However, in the currency 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 currency market.

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