The Different Of Foreign Exchange Market and Stock Market


Foreign exchange market is also known as the FX market, and Forex market. Trading that takes place between two counties with different currencies is the basis for the FX market and the background of the trading in this market. Forex market is over thirty years old, established in the early 1970's. Forex market one that is not based on any business or investment in a business, but the trading and selling of currencies.

 The difference between the Stock market and the Forex market is the vast trading that occurs on the Forex market.  Millions and millions that are traded daily on the Forex market, almost two trillion dollars traded everyday. The amount is much higher than the money traded on the daily stock market of any country. Forex market involves governments, banks, financial institutions and those similar types of institutions from other countries. 

 What is traded, bought and sold on the Forex market  that can easily be liquidated, meaning it can be turned back to cash fast, or often times it is actually going to be cash. From one currency to another, the availability of cash in the Forex market is that can happen fast for any investor from any country.

 The difference between the Stock market and the Forex market is that the Forex market is global, worldwide. Stock market is something that only happens in a country. The stock market is based on businesses and products that are within a country, and the Forex market takes that a step further to include all countries.

 The Stock market has set business hours. Typically this will be following working day and will be closed on banking holidays and weekends. The Forex market is one that is open generally twenty four hours a day because of the large number of countries involved in Forex trading, buying and selling are located in so many different time zones. If a market is opening, another countries market close. This is the continual method of how the Forex market trading occurs.
Stock market in any different country will be based on only that countries currency,  for example the Japanese yen, and the Japanese stock market, or the U.S. Stock market and the dollar. But in the Forex market, you are involved with many types of countries, and many currencies. You will find references to various currencies, and this is a big difference between the stock market and currency market.


The Different Of Foreign Exchange Market and Stock Market