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Forex Vs Stocks Trading Difference: What market is best to trade?


Forex Vs Stocks Trading. Which Market is better to trade? Learn the main difference between forex and stock market and what kind of trader are you? – PowerPoint PPT presentation

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Date added: 18 July 2019
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Title: Forex Vs Stocks Trading Difference: What market is best to trade?


A Brief Introduction
  • Forex and stocks market are quite popular
    financial markets.
  • Statistics show that there are about 10 million
    FX traders and around 9.6 million stock
    traders worldwide.
  • Despite their similarities and undeniable
    interconnectedness, stocks and forex are very
    different markets. Each market has something
    unique to offer. Also, they come with varying
    pros and cons.

What is Forex?
  • The foreign exchange market is a highly fluid
    market where you can trade one currency against
    another. Its fluidity and immense growth can be
    primarily attributed to the high demand for
    foreign currency exchange all around the globe.
  • For example, if you go to Japan with a US dollar
    in your wallet, you need to exchange your
    currency to buy food and pay for your fare and
    other expenses. The same is done for companies
    who do business with those clients from other
  • Unlike the rest of the financial markets, forex
    uses a decentralised system.
  • Instead of going to an exchange market such as
    the New York Stock Exchange, you can trade OTC
    via networks of computers. You can trade against
    folks from all around the globe 24 hours a day, 5
    days a week.
  • You need to trade currencies by pairs. In order
    to make a profit, you need to observe the market
    trend. You need to pay attention to key forex
    signals to help you identify the most opportune

What is the stock market?
  • The other type of market we will tackle in this
    guide is the stock market. Its a type of
    financial market where investors connect and
    trade investments such as stocks to buy a share
    of a company.
  • Nerdwallet compares the stock market to an
    auction company where buyers, as well as sellers,
    can negotiate and make a trade.
  • Companies list the total number of shares an
    investor can buy in order to raise money for
  • In most cases, investors trade the shares they
    purchase with other investors to gain profit or
    to liquidate their available assets.
  • The price of a company's stocks is primarily
    affected by the available supply plus the market
    demand. Traders mostly make use of apps or
    software provided by their brokers to determine
    which stocks can provide them with the best

Main Differences Between Forex and the Stock
  • Now that you have a bit of background about forex
    vs stock trading, we can start looking at their
    differences and how you choose the right option
    for you.
  • Volume 
  • 24-hour markets
  • Liquidity
  • Broker commission
  • Market focus

Choose a Market Based on Your Trading Style
  • Aside from knowing the difference between stocks
    and forex, and the different trading
    strategies its equally important to know your
    trading style so you can choose the right market
    for you.  
  • Short-term Trader
  • Medium-term trader
  • Long-term trader

  • Here are some last few bits of expert advice to
    help you choose between forex trading vs stock
  • Stick with what works - Theres no right or wrong
    choice. Everything boils down to how you handle
    your trade, analyze your loses and profits and
    plan your strategy.
  • Choose based on your goals and trading style -
    Know which market suits your goals, personality
    and trading style. This will help you learn the
    ropes faster.
  • Understand the main differences between the two -
    Review the tips provided above in order to
    differentiate each option and determine where you
    should invest your hard-earned cash.
  • Leaning towards trading in the Forex market?
    Enroll in our Forex Trading course to learn
    everything you need to know about the largest
    financial market in the world.

Thank you