Foreign Exchange Trading is in Many Ways Radically Different From the Stock Market

The difference between the stock market and the forex market is the vast trading that occurs on the forex market. There is millions and millions that are traded daily on the forex market, almost two trillion dollars is traded daily. The amount is much higher than the money traded on the daily stock market of any country. The forex market is one that involves governments, banks, financial institutions and those similar types of institutions from other countries.

The stock market has set business hours. Generally, this is going to follow the business day, and will be closed on banking holidays and weekends. The forex market is one that is open generally twenty four hours a day because the vast number of countries that are involved in forex trading, buying and selling are located in so many different times zones. As one market is opening, another countries market is closing. This is the continual method of how the forex market trading occurs.

When you are making a transaction from one market to another involving one currency to another, you will see the symbols are used to explain the transactions. All transactions will look something like this EURzzz/USDzzz where the zzz is to represent the percentages of trading for the percentage of the transaction. Other instances you could see something like this – AUSzzz/USD – and so on. When reading and reviewing your forex trade statements and online transaction information you will understand it all much better as you become more familiar with it.

The foreign exchange market is also known as the FX market, and the forex market. Trading that takes place between two counties with different currencies is the basis for the fx market and the background of the trading in this market. The forex market is over thirty years old, established in the early 1970\’s. The forex market is one that is not based on any one business or investing in any one business, but the trading and selling of currencies.

What is traded, bought and sold on the forex market is something that can easily be liquidated, meaning it can be turned back to cash fast, or often times it is actually going to be cash. From one currency to another, the availability of cash in the forex market is something that can happen fast for any investor from any country.

The difference between the stock market and the forex market is that the forex market is global, worldwide. The stock market is something that takes place only within a country. The stock market is based on businesses and products that are within a country. What you will see when you learn forex trading is that the forex market takes that a step further to include any country.

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 United States stock market and the dollar. However, in the forex 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 the forex market.

Author Bio: If you have been wanting to learn forex trading check out the reviews and resources on our ever expanding website.

Category: Finances
Keywords: learn forex trading, learn forex markets, forex trading

Related Articles:


Post Footer automatically generated by Add Post Footer Plugin for wordpress.

Website Pin Facebook Twitter Myspace Friendfeed Technorati del.icio.us Digg Google StumbleUpon Premium Responsive

Leave a Reply