The stock market (in the US) and the Forex marketJulius Conley 01 / April / 22 Visitors: 256
The stock market (in the US) and the Forex market have a number of differences. In Russia, the stock market is also called the stock market. What is the difference between these two markets? 1. Work on the Stock Market begins at 9.30 in the morning and lasts until 16.00 New York time. Therefore, traders who make most of the trades during the day cannot actively trade on the Stock Market at this time of day.
In contrast, the Forex market is open 24 hours a day (except Saturdays and Sundays, there is no trading these days), which allows the trader not to adjust to the market, but to choose the most convenient and appropriate trading time. 2. Given that the stock market trades thousands of shares of different companies, it is very difficult or almost impossible to guess or predict which shares and which companies' prices will rise or fall. Just like getting to know them all. For this reason, the selection of some major companies for further monitoring of them from the huge variety available can be a challenge. However, Forex, in most cases, is traded in several specific currencies, the price of which is expressed in US dollars. Also, the value of these currency pairs against the dollar and against each other is much more affected by economic events and news, in contrast to the shares of companies in the Stock Market.
It is much easier to analyze objective economic factors that affect the state of affairs within the countries of interest, because economic news is always freely available due to their regular publication in the media. 3. In times of deteriorating economic situation within the country and the constant decline of the market, investors trading on the Stock Market are in a very difficult position. At such times, their income decreases very critically, and in some cases may even drop to zero if the investor does not borrow money from a broker to play the game of decline.
Due to the cyclical development of the economy, after its growth always comes a recession, the duration of which can vary from several months to several years. At this time in the Forex market, in contrast to the stock market, traders trade by buying rising in price and selling falling in price currencies. This is the basic principle of trading and making a profit from it in the Forex currency market. Despite a number of advantages of the Forex currency market before the stock market, no one can guarantee a 100% win here. As with the Stock Market, it is also likely to lose all its funds.