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Sunday, May 10, 2009

The Forex Exchange Market and Stock Market

By Calvin Wapasa

The FX market is also referred to as the international foreign exchange market. Dealing that happens between two nations even if they have unique monetary systems thanks to the foundation of the FX market as well as the background for the dealing in this marketplace established in the early 70's the Forex market is over thirty years of age where you are not investing or trading in business enterprises instead your are selling and trading systems of currency.

There is a difference between the forex market and the stock market is the incredible amount of trading that takes place an amazing two trillion dollars or more can be traded each day, a significantly higher amount than the money traded on the daily stock market of any country. The foreign exchange market is one of a few that involves governments, banks, financial institutions and those similar types of institutions from other countries.

The items that are bought and sold on the fx market are easily liquidated meaning it can be turned back to cash fast, or often times it is actually going to be cash. The currency of one country 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 foreign exchange market and the stock market the first is worldwide. Where as the stock market only happens in one country due to dealing with the businesses and products in that country the foreign exchange market goes beyond that and involves any and all countries.

The stock market has set business hours and generally, follows the working business day this means that it is closed on holidays and weekends The foreign exchange market is open 24 hour a day because of the vast number of countries that are involved in trading, buying and selling that are located in so many different times zones. Markets open in one country other countries are closing their markets which makes this an ongoing process of how the foreign market training happens

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 Spanish peso and the Spanish stock market. Different then the foreign exchange market you are involved with many types of countries, and multiple currencies. You will find references to a variety of currencies, and this is a big difference between the stock market and the foreign exchange market. - 23222

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