This difference between the Foreign exchange market is completely different than the stock market.
The foreign exchange market is commonly known as "FOREX
" or "FX Market". The FOREX Market trading
that takes place between two counties (which are called currency "pairs") with different currencies is the basis for the fx market and the background of the trading in in the FOREX Market. The forex market was first established over 3 decades ago 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 invest lies in the the trading and selling of currencies (which of course has to do with how well the businesses do or don't do and the job markets in the different governments its based in.)
The difference between the stock market and the forex market is the vast trading that occurs on the forex market
. There is trillions and trillions that are traded daily on the forex market, more than two trillion dollars is traded daily. This amount is much trumps the the money traded on the daily stock market of any country. This is what makes investors so attracted to FOREX. The forex market is one that involves all types of governments, banks, financial institutions and those similar types of institutions from several countries.
The currency that is traded, bought and sold on the forex market is something that can be easily 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. You can take a small investment and quaddruple it within minutes or hours. This how the day traders in FOREX
establish themselves as investors.
With the stock market you are subjected to singular 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. As you can see the FOREX market
is completely diverse and flexible.
The stock market opens and closes on a daily business, from 8am to 6pm generally they have set business hours. Also, 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 usually open 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 occurs. Although most investors prefer to only make their invests during certain market hours.
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.
Basically the FOREX market
is your fast track solution to increasing your income by investing in a flexible platform that doesn't require you to do business in a singular country.
Kevin Smith has been an active day trader investor that utilizes many of the Forex trading techniques over the past 10 years. You can visit his website for free information such as tips, forex signals
and forex news
and he's giving away over 300 expert advisors FREE of charge. Get your free expert advisors on Kevins site and let Kevin how they're doing.