The difference between Forex Trading and Stock Trading


The difference between Forex Trading and Stock Trading

Forex trading and stock trading, the foreign exchange market operates continuously 24 hours a day. The brokerage firms operate their trading programs from Sunday at 2 PM EST through Friday at 4 PM EST with customer service 24/7. With the ability to trade in the US, Asia, and the European market. You can create a schedule for your Forex trading at any time that suits you.

Free trade without commissions:

Most of the forex brokers must be far from being charged with wrongdoing and adding any additional fees to commercial transactions, whether currency trading is done online or over the phone, and therefore there must be credibility and transparency so that brokerage companies do not get in the forex trade other than the difference in the selling price from the purchase price Just spread in exchange for services.

Immediate execution of orders:

What you see of the prices in front of you in the forex market under normal market conditions is what is already there, so when you click on the price in front of you, you are thus buying and selling at the same immediate current price and therefore the speed of executing orders and seizing the best opportunities as you see them in front of you actually confirms the credibility of the broker. On the contrary, in the stock market, when you see different prices and you cannot catch up with the price, then you say (Yeah!)

However, in the extremely turbulent market conditions for implementation, it may suffer from delays in execution and consequently failure to catch up with the train of luckier trading opportunities.

Short selling:

Unlike the stock market, there are no restrictions on short-selling in the currency market. And trading opportunities in the Forex market, regardless of whether they are long or short-term, or the way the market moves. Since trading in currencies always involves buying one currency and selling another, there is no structural bias on the market. Therefore, equal access to trade in both rising and falling markets increases the advantages of this market.

Full control over the buying and selling processes through trading software.

Forex brokerage firms are trying hard and constantly to develop their trading programs (platforms) in order to be easy and comfortable for clients in faster execution of orders, and there is complete control over those orders.

Analysts and brokerages are less likely to influence the forex market.

When you recently watched TV? You hear about some stocks on the lips of an analyst of brokerage firms in the field of stocks and the extent of the bias towards some shares, which may be reflected in many of those who follow that analyst, and consequently to large losses, quite unlike forex.

8,000 shares for 4 major currency pairs.

There are approximately 4,500 stocks listed on the New York Stock Exchange. Another 3,500 are listed on the Nasdaq index. As for currencies, there are dozens of currencies in circulation, but the vast majority of major trading markets focus on 4 major pairs, and the following 4 pairs are much easier than monitoring thousands of stocks.

كاتب المقالة
writer and blogger, founder of alaa5 .

جديد قسم :

Post a Comment