Foreign exchange market is different from the stock market
The foreign exchange market is also known as the FX market, and the
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. The forex market is over thirty years
old, established in the early 1970's. The forex market is one that is
not based on any one business or investing in any one 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. There is millions and
millions that are traded daily on the forex market, almost two
trillion dollars is traded daily. The amount is much higher than the
money traded on the daily stock market of any country. The forex
market is one that involves governments, banks, financial institutions
and those similar types of institutions from other countries. The
What is traded, bought and sold on the forex market is something 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 something
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. The stock market is something
that takes place only within 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 any country.
The stock market has set business hours. Generally, this is going to
follow the business 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 the vast number of countries that are involved in
forex trading, buying and selling are located in so many different
times zones. As one market is opening, another countries market is
closing. This is the continual method of how the forex market trading
The stock market in any country is going to be based on only that
countries currency, say for example the Japanese yen, and the Japanese
stock market, or the United States stock market and the dollar.
However, in the forex market, you are involved with many types of
countries, and many currencies. You will find references to a variety
of currencies, and this is a big difference between the stock market
and the forex market.
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