A major difference between the Forex and stock market is the amount of trading
There are 4 major currency pairs;
EUR/USD, USD/JPY, GBP/USD, USD/CHF and you will find 3 commodity pairs, USD/CAD,
AUD/USD, NZD/USD. More on this later. All other currency pairs are called cross
currencies, which are basically different mixtures of the very same currencies
mentioned previously. Currency trading is simpler to follow along as you just follow these
rather than picking form 10,000 of shares to find the very best deal.
The one thing a Currency trader has to do is keeping up on the information regarding these major 8 nations.

Stocks market and decreasing volumes
Fairly often, the stock markets may hit a lull, Leading to shrinking volumes and Action. As a result, It Might Be Difficult to open and close positions when you Want To do so. In downward markets, it's a hard job for a stock trader to create decent or Even profits. It is Hard to sell from the U.S. Stock market as it understands strict principles and regulations. On the other side we've got Forex which offers you the Chance to Gain in both up and downward markets. The same time within every transaction. So shorting is, hence, part Single trade you make. In addition, since the currency market is so liquid, traders are not Required to await a swing high in order to go into a sell position that's the rule in The normal stock market.Liquidity of Currency Forex market

Source: Trading manual Part 2: Forex vs Stocks
No comments:
Post a Comment