Is trading forex same as stock?

[tradingstrategies]

While forex trading alludes to trading of global monetary standards, stock trading manages trading portions of different organizations.

 

[Holicent]

Trading forex is not the same as trading stocks. When you trade stocks, you buy and sell equity in publicly traded companies. The stock market is a physical or virtual market that allows people to buy and sell shares of publicly traded companies, or specific securities of those companies.

Forex trading involves buying and selling foreign currencies. Forex traders are speculating on the value of one currency versus another currency by trading "currency pairs." A currency pair represents the quote and ask price for the currencies being traded. For example, EUR/USD (euro/US dollar) is a common currency pair used to express the price of the euro in terms of the US dollar.

The big difference between stock trading and forex trading is that with stock trading, you're only trying to make money on the value of your investment going up; but with forex trading, the value of your investment can actually go down while you still make money if your trade went in the right direction.

 

[Ayuba Ernest]

The foreign exchange market, also known as forex, is a decentralized market where currencies are traded. Currencies are bought and sold, and prices are determined by supply and demand. The forex market is the largest and most liquid market in the world, with trillions of dollars traded every day.

There are many similarities between forex and stock trading, but there are also some key differences. Both forex and stock trading involve buying and selling assets in order to make a profit. However, the assets traded in the two markets are different. In forex trading, currencies are the assets being traded. In stock trading, stocks are the assets being traded.

Another key difference between forex and stock trading is the amount of leverage that is available. Leverage is the use of borrowed money to increase the potential return of an investment. In forex trading, leverage can be as high as 1:500. This means that for every $1 you have in your account, you can trade up to $500. In stock trading, the maximum leverage is usually 1:2 or 1:3.

So, is trading forex the same as stock trading? No, there are some key differences between the two markets. However, both forex and stock trading can be profitable if done correctly.

 

[Suba]

Although forex trading and stock trading are not the same, but both have similarities and differences, including:
Similarities, both can be traded online, price volatility, both require technical analysis skills. Both stock and forex trading are high risk.
Difference: In forex all traders can use leverage, whereas in stock trading it is only for specialized (margin) traders. Trading hours on stocks are only morning to evening (8 hours) while on forex 24 hours.

 

[Archipelago]

Forex trading involves trading currencies, so you are buying one currency by selling another, whereas in stock trading, you are buying stocks of a particular company, keeping them for a day or months or sometimes, for years to make profits. In forex trading, you don’t keep currency pairs for such a long duration.

Forex trading has the maximum trading volume of around $6 trillion per day and stock trading doesn’t come close to it.

Forex trading can be traded in any currency whereas a stock can be traded in one particular currency only like for example USD in The States.
Forex trading works 24 hours 5 days whereas stock trading begins in the morning and concludes in the evening.

 

[shirleencomer]

No! I mean how you can compare currency pairs to the shares of companies. If you can do that, you can compare them too!

 

[Ponmo]

No, trading forex is exchange of currencies and stock is selling or buying or holding stocks or shares of companies, while the two markets might have some similarities, they are two separate markets.

 

[Impetrate]

Not at all. Forex trading is buying and selling of international currencies in pairs. Whereas, stock trading is referred to buying shares of any particular company.
The Forex market is more volatile and offers high liquidity, whereas the stock market is comparatively less volatile and offers less liquidity.

 

[Symphonia]

Although forex and stock trading are not the same at all, they have several similarities and distinctions, such as the ability to trade online, price volatility, and the need for technical analysis. Stock and FX trading are both high-risk investments.

Difference: Leverage is available to all forex traders, whereas it is only available to specialised traders in stock trading. Stock trading hours are only from dawn to evening, however, you can trade forex 24/5.

 

[Genesiology]

Trading forex is different from trading stocks. The assets traded in forex and stock are different. Currencies are trading in pairs in forex and stocks or shares of the companies are traded.
Traders choose the market for trading depending on their prior experience and knowledge.

 

[Tactical]

The basic procedure of trading both stocks and forex is the same. You buy them at a low price and sell them at a high price. But as tea and coffee are two different things, stocks and forex are two different securities traded in two different financial markets.

 

[Ivo Zetticci]

Use multiple strategies to produce signals. You have to make the best use of your potential to derive better profit from the market. Eurotrader allows you to apply multiple strategies on your platform and the platform is free of slippage, dealing desk and requites.

 

[FXOchartist]

It is similar but there is some difference, in the field the risk, both are risky investments, but in stock, investors will have the opportunity to obtain gain when they buy the stock first and then sell the stock at higher prices, or possible to get dividend from company profit share, but not all company give dividend.

However investors are also possible to trade CFD stocks market with leverage, in CFD trading, traders buy stock but not buy physical stocks but the price of underlying stocks, they can buy and sell anytime. there are so many CFD brokers that provide stock trading including FXOpen.

In forex, traders have two ways opportunities even buy or sell they have the opportunity to gain profit, and another difference is how to analyze the market, in stocks investors looking news companies that issuer stocks, while in forex investors looking news related to economic conditions countries.

 

[Dita Walczak]

If you want to earn more in a trader, trade in a low trading spread. And leverage is a loan provided by brokers, even though it increases trading risk. So, try to muse low trading leverage in trading. Eurotrader offers high trading leverage with narrow trading spread in majority of the trading pairs.

 

[Mary Frederick]

Being a part of forex is really a big thing as it is a decentralized market where more than 4 trillion transactions take place every day and broker works as an intermediary. However, don’t make a utopian scheme about trading because it will destroy you. Follow a step by step guide to develop yourself. Eurotrader is a secure trading broker to invest in.

 

[ShyCube]

There are some similarities, but there are also some differences. These two businesses are not the same. However, if you have prior experience in any of the markets, you will be able to learn and grasp the market much faster.

 

[Jack Reacher]

Forex deals with currencies. I prefer trading in EURUSD and GBPUSD because I can trade here by using moderate leverage and using the low trading spread. These pairs help me carry a handsome amount of profit. Eurotrader broker allows traders with more than 50 trading pairs.