What is the difference between Forex and Stock?

What is the difference between Forex and Stock?


                What is the difference between Forex and Stock?

Stock markets are the public markets that issue, sell and buy stocks, and these stocks are traded on the stock exchange market. There are many international stock markets including the New York Stock Exchange, the London Stock Exchange, the Frankfurt Stock Exchange, and the Tokyo Stock Exchange. On the other side, Forex Exchange Market is the place where people predict the exchange rate between various currencies. The global market of Forex was developed with the development of electronic trading platforms and the internet since people are aware of the global currency market.

There are many differences between Forex and Stock including:

1-You have a limited number of currencies to trade within the forex while there are thousands of stocks to trade with in stock markets.

2-Before selling a stock you must buy the stock but in forex, you can sell currency pears without buying them first.

2-There are currency patterns in forex, once you understand, the patterns will be repetitive while for a stock trade you need to research a lot and take too many independent factors into consideration.

3-The price of the stock rarely goes beyond zero and it is hard to make a very high profit with trading with stocks while forex balance can go below zero and lose or gain millions in a matter of a second.

 

4- The volume of stocks is measurable while the volume of forex is not well-defined and measurable easily.

Ansar Anwar

Innovation Project Manager | Driving Creativity and Strategic Growth

5 年

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