Little Difference between Forex and Other Trading Markets

[Ramolak19]

The foreign exchange (forex) market is a global, decentralized, over-the-counter (OTC) market for the trading of currencies. It is the largest and most liquid financial market in the world, with an average daily trading volume of more than $5 trillion. This is significantly larger than the stock, futures, or options markets, where daily trading volume typically ranges from tens to hundreds of billions of dollars.​

The primary difference between forex trading and other types of financial markets is that forex trades take place in pairs – for example, EUR/USD and USD/JPY. The currencies are always traded in pairs and the transactions are always done in pairs. Also, forex trades are conducted over the counter, meaning that trades are not conducted through any centralized exchange.​

The other main difference between forex and other markets is the time of trading. On the other hand, other markets have trading sessions that run at specific times during the day. In the forex market, trading is conducted 24 hours a day, 5 days a week, over the counter. This allows traders to take advantage of trading opportunities at any time of the day.

Finally, the cost of trading in the forex market is generally lower than in other markets. This is mainly due to the lack of centralized exchanges and the associated fees, as well as the fact that trading can be done over the counter. This makes it attractive for traders who are looking for a low-cost way to trade.

 

[marym]

Forex (foreign exchange) trading and other trading markets, such as stocks, commodities, and options, have some similarities but also some differences. Here are some of the key differences between forex trading and other trading markets:

1. Market Size: The forex market is the largest financial market in the world, with an average daily trading volume of over $6 trillion, while the other trading markets have a lower trading volume.
2. 24-Hour Market: The forex market is open 24 hours a day, 5 days a week, while other markets have fixed trading hours. This means that traders can trade forex at any time of the day or night, which can be an advantage or a disadvantage depending on the trading strategy.
3. High Leverage: Forex trading allows traders to use high leverage, which means that they can control large positions with a relatively small amount of capital. Other trading markets typically have lower leverage limits.
4. Fewer Trading Instruments: The forex market offers a limited number of trading instruments, mainly currency pairs, while other markets offer a wider range of trading instruments, such as stocks, commodities, and indices.

 

[FXOchartist]

Forex market compared another market like stocks market just like the giant versus a dwarf, forex market is the biggest market which transaction forex through electronic transaction without central place a buyer and seller meet each other. Although from home in front of the computer we can open buy and sell from the trading platform to trade particular pair currencies.

Indeed forex market open 24 hours, however need to understand if the market split in four session which everytime frist session time close already second session opened, there are overlaping time on each session to next session. Sidney, Tokyo, London, New York. And the most busiest session usually occur in the overlaping session from London to Ne York.

Choose the broker is important in forex trading, of course traders want to use trustworthy and reliable company with good trading condition and low spread, FXOpen included a good broker and in the 2022 get award from Traders union as best innovative broker in 2022.