If you’re new to foreign exchange, or forex, as it is commonly known, you’re probably wondering what makes it different from stock exchanges.
forex is both similar and different to stock exchanges.Here are some of the main diffrences:
Unlike the stock market, where money is traded for shares in company’s stock,Forex is all about trading one type of currency for another.In both markets, you make money by following the same principle:buying low and selling hige.However, the forex market differs from the stock market in that going long(betting on a rising price) or short(betting on afilling price)is equally easy.
You may have experience as a forex trader and not even know it: anyone who has traveled to another country and exchanged their home currency for the local currency has traded forex! Of course, the global forex market operates on a much larger scale, involving importers and exporters,
multinational corporations, portfolio managers, hedge funds, and speculators. Some of these players are doing business in other countries, some are hedging one currency against another in order to prevent losses, and some are engaged in currency speculation – trying to predict and profit from favorable currency movements.
The forex market is one of the most exciting and trader-friendly markets in the world. Here are some other useful facts to know if you’d like to become a forex trader.
The Forex Market is Huge: ‘I hanks to its sheer size, it is almost impossible for any one person, institution or government to control the forex market for long at an estimated $3.98 trillion plus, the average daily turnover of the forex market easily trumps that of the New York and London Stock exchanges put together.
The Forex Market Offers 24/5 Aocessibility: Forex trades can be made 24 hours a day, 5 days a week. The market runs non-stop from 20:15 GMT on Sunday until 22:00 GMT on Friday.