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.

Forex Market Analysis From Different Corner

Foreign exchange market is the oldest market in the world. It is also seen to be the largest one. Forex is also the largest market with highest liquidity. This is an interbank market carrying out spot (or cash) transactions. The currency futures market, to be compared with Forex is traded only 1% as much.

This does not have any exchange center unlike the stock market. Forex trading seem to go after the sun around the world, from banks of the United States to other parts of the world like Australia, New Zealand, the Far East or Europe and back to the US some time later.

Forex, What is it?

Forex is a term that stands for Foreign Exchange. It is sometimes just FX, too. These terms all describe the process of trading the currencies in the world. Unlike the stock market, in the Forex markets, you do not trade ownership in a business. Rather, you are trading the value of money, based on the ups and downs of the currencies of the market. It sounds interesting because it is.

The simple sense of Forex is simultaneous purchase and sale of the currency or the exchange of one country's currency for the one of another country. The world currencies do not have a fixed exchange rate and are always fluctuating, since each are traded in the currency pairs like Euro/Dollar, Dollar/Yen and others. 85% of daily trades are taken by major currencies trading.