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Member Posts: 118 |
Forextrading differes from Stock trading due to following reasons: InStock markets you have companies from different sectors, saythousands in numbers but in Currency market trader mainly deals withleading currencies in the world. The Major currencies count formajority of transactions. They are US Dollar (USD), Euro (EUR),Japanese Yen (JPY), British Pount (GBP), Canadian Dollar (CAD),Australian Dollaer (AUD), New Zealand Dollaer (NZD) and Swiss Franc(CHD). These are traders favorites and high volume currencies. TheStock market has a particular time of opening and closing and traderstrade in that particular period of time but Currency trading is done24 hours a day in some market or other. Becauseof the leveraging (margin trading), even a small amount such as $50can get you exposure to buying 1000s of units of a particular pair. Evena small change (such as 0.0001) in the price can result in asignificant return on your investment due to leveraging.
Thevolumes are so high that buying and disposal is easier.
Usuallythere is no account opening fee or even brokerage charges – theforex company’s commission is only the difference between the selland buy price at any time (buy price willbe always slightly more than the sell price at any time).
Thereis nophysical shares,documents or dematerialized form of the traded currencies maintainedanywhere. The trading system just keeps your buy-sell status.
Dueto the huge volume nature and global span, currencymarket cannot be manipulated by traders whereas stocks, sometimes, can be manipulated by insiders and marketmakers.
Source : http://stocks-mcx-gold-tips.blogspot.com/2011/12/difference-between-forex-trading-and.html | |
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