Difference Between Forex and Stocks

Difference Between Forex and Stocks : The difference between Forex with shares at this time So also in stock, in forex trading, the main purpose is to benefit from the difference between the price movement. However there are a few things that differentiate the two. Many people think that forex is more 'Hot'. Let's see the comparison.

Capitalization Comparison
If Nothing is greater than the forex market, in any market and any kind. Forex remains the largest. So it can be said the forex market is very liquid. For comparison, if we look at the stock market IDX (Indonesia Stock Exchange) is the buying transaction jula range 4-7 trillion / day. While the forex market is the world's 3.5 Trillion Dollar (Remember in the dollar, which means 1000x fold greater.

Market and non-stop 24 hours
If the forex market is 24-hours without limits. Broker open from Sunday at 14:00 ET to Friday at 16.00 Est with customer service available 24/5. With the ability to serve the trading markets of USA, ASIA, and the European market, you can customize your own trading schedule. Compare this with the example of a local exchange (IDX), is open only on weekdays (Monday s / d Friday) at 09.30 s / d 16:00. For those of you who work formal (office) This certainly conflicts with your schedule.

Commission-free
If Most forex brokers do not charge an additional fee (commission or transaction fee). Brokers have taken the services of the spread between the buy / sell. For while the shares (IDX) you have to pay a fee of 0.15% The s / d 0.3% of the buy / sell you.

Transaction speed / Order
If you do not have to queue as soon as possible to make transactions / orders. Differences with the stock where you have to wait their turn so that your order can be realized. In forex unnecessary, extremely large market allows the number of buyers and sellers is not limited. However keep in mind that the broker can serve your order as soon as possible with a normal market records, a condition in which price movements are very extreme (volatile), the broker may delay your order shortly.

Potential Advantages of Two-Way
If contrast to stock or equity, in forex you can benefit both ways, either when the market goes up, down, or where prices / the market will move. In the short term sell existing shares (aimed at obtaining profits when stock prices fall), yes indeed similar, but you can not do it on all stock, only on certain stocks.

Complexity
If There are approximately 4,500 stocks listed on the New York Stock Exchange. Another 3,500 are listed on NASDAQ. Roughly where the stock will trade in / select? Have enough time to keep up on top of so many companies / stocks? In forex trading, there are dozens of currencies traded, but most of the trade show market is on four major currency pair (USD, EURO, GBP, YEN). Is not four pairs of eyes is much easier to control than thousands of stock?

Bandar free
If you'll often hear the term 'fried' in stock, especially the local stock market / IDX. Well, why a stock can be fried? Because there is someone / group of individual / financial institutions, with a strong enough funds, to buy a stock continuously. This makes as if a stock is rising, and affected many individual traders went along to buy the shares. By the time the price has gone up in accordance with the wishes of airports, ports as soon as possible to sell these shares (dealer profit).

How to Forex? Quite simply, about how much capital needs to move a market worth 3.5 trillion dollars, money who's bottom line that much. Perhaps only in China that could be because according to information from China has foreign exchange reserves of 4 trillion dollars. But what he's willing to risk risking all the money just for 1 day.

Rumors
If in stock a rumor or gossip small, will be able to move the price. Especially if the rumors are sometimes packaged in the form of a professional, such as a stock TA guide and do in TV, radio, and so on. Sometimes this can move the stock price. But in forex can be said is not possible. Can it be spread rumors to ear all traders world? Your own responsibility.

Skope
If In forex trade, means that we are bound globally / internationally to financial markets around the world. When we play local shares, then you should look at is the Indonesian economy. And local stock price movements (JCI), will never be able to affect the forex trading (such as the price of the pair EUR / USD). But global conditions and sentiments that occur in the forex market, can sometimes beimabs up to local stocks or shares of a particular country. The reason is such as the EUR / USD rose (market / value U.S. down), it can be seen that the U.S. economy is down. Usually if the U.S. economy down in U.S. stocks also on down, the next could be affected the BEI.

2 comments:

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