The two financial markets, stock and
forex, are closely linked with each other and its not really
surprising if similarities between them arises. But we'll tackle that
some other time and instead focus on the difference between them.
The financial instrument
Both markets are involved in trading.
The techniques and certain indicators used in trading apply to both
of them but there is a difference in the instrument being traded.
Currencies are being exchanged in Forex while securities are being
traded in the stock market
Participants
Participants in the stock market are
required to find each other. This complicates things because the loss
may increase substantially if the traders won't find each other in
time.
Location
The trading of stocks may only be done
on stock exchanges unlike Forex wherein trading may take place as
long as there's an access to the internet.
Leverage
Margin trading is not applicable to the
stock market. A trader may only buy a stock that his/her money can
afford.
Working hours
Since trading in the stock market are
situated on stock exchange centers, there's an opening and closing
time. The time to trade is limited unlike forex wherein trading is
done 24/7.
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