Get the complete info & details of Forex Market VS Stock Market.
Forex Market:- The market in which participants are able to Sell, Buy, Exchanges & speculate on currencies. Foreing exchanges market are made up of banks, commercial companies, central banks, investment managements firms, hedge funds, & retail forex brokers & investors, The forex market is considered to be the largest financial market in the world.
Stock Market:- A stock Market or equity market is a public entity for the trading of company stock(shares) & derivatives at an agreed price.
Difference Between Commodity Market & Share Market.
|Forex Market||Stock Market|
|Liquidity||High to very high -All Hours||High during market hours|
|Trading Hours||7hours a day (Indian Market).|
22 hours a day (International Market).
5 days a weeks.
|9:00 am to 3:30 pm, 5 Days a week|
|Minimum capital||Starts with minimum amount||Starts with minimum amount|
|Leverage or Margin||Yes, Can be up to 500:1 & so on||Can be up to 40 times more for intradays. but need to clear outst&ing within 3 days.|
|Short Selling||No restriction due to forex is both way trading||Restriction on short selling & stop orders.|
|Confidence in securities||Major currencies will not fail||Some companies will fails without notices.|
|How to Trade||Mostly trade online||Trade online or phone call thru remisers.|
|How to leverage can be help growing your capital?||Intraday Trade, Your capital easily can growth few hundred percent,|
but easy get margin call if you don’t know how to manage it. No need Q buy Long, Shorts.
|Within a days, capital can grow 5% to 20% ++ but same go opposite directions. Need Q during buy & sell stocks.|
Advantages Of Forex Trading.
1) The forex market is extremely liquid, hence its rapidly growing popularity. Currencies may be converted when bought or sold without causing too much movements in the price & keeping losses to a minimum.
2) As there is no central banks, trading can takes place anywhere in the world & operates on a 24- houres basis aparts from weekends & holidays.
3) An investors needs only small amount of capital compared with other investments. Forex trading is outst&ing in this regards
4) It is an unregulated market, meaning there is no trade commission overseeing transactions & there are no restriction on trades.
5) Low Tranjection cost.
6) Ability to profit in both directions.
Disadvantages Of Commodity Trading.
1) The major risk is that onces the counter party fails to dilivers the currency invilved in a very large tranjactiosn. In theory at least, Such a failure could ruin to the forex market as a whole.
2) High leverages may cause high loss.
Advantages & Disadvantages of Stock Trading.
|Work at home Low commissions.||High risk:- If a company goes bankrupt &you bought their stock your stock may be worthless.|
|Complete freedom No time bar.||Extra cost for brokerage services:Many brokers charge additional fees for trading penny stocks.|
|Make money in minutesNo investment limitQuick returns.|