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Tuesday, March 6, 2012

Forex market is different from the stock market

ATX trading averages January 2, 1991 - March 1...Image via Wikipedia
By Felix Richman

The currency market is also referred to as the FX market, and the forex market. Trading that takes place between two countries 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 of age , established in the early 1970's. The forex market is one that isn't based totally on any one business or investing in any one business, but the trading and selling of currencies.

The most significant difference between the stock market and the forex market is the massive trading that occurs on the forex market. There are millions that are traded daily on the forex market, nearly two trillion dollars is traded daily. The amount is far higher than the money traded on the daily stock market of any country. The forex market is one that involves central authorities, banks, money institutions and those similar types of institutions from other nations.

What is traded, purchased and sold on the forex market is something that may simply be liquidated, meaning it can be turned back to cash fast. From one currency to another, the provision of cash in the forex market is something that will occur fast for any investor from any country.

The biggest difference between the stock market and the forex market is that the forex market is global, globally. The stock market is something that happens only within a country. The stock market is founded upon businesses and products that are within a country, and the forex market takes that a step farther to include any country.

The stock market has set business hours. Sometimes, this is going to follow the working day, and will likely be closed on banking vacations and weekends. The forex market is one that is open sometimes 24 hours a day because the enormous number of countries that are involved in forex trading, purchasing and selling are found in such a large amount of different time areas. As one market is opening, another nation's market is closing. This is the continuous methodology of how the forex market trading occurs.

The stock market in any country will be based totally on only that nation's currency, say for instance the Japanese yen, and the Japanese stock market, or the United States stock market and the dollar. However , in the forex market, you are concerned with many types of countries, and many currencies. You will find references to a spread of currencies, and this is a big difference between the stock market and the forex market.

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