In this article i am going to explain how stock market and forex market are different from each others. Let me explain you first what is stock market? Stock market is simply a trading of stocks for profits or investment. Stock is supply of money that company raised. In stock market investor supply the money to company for grows and makes profits when company’s stock value gets increase.
Stock market is simply an investment by people to make profits. If the person has not much knowledge still he/she can make good profit in stock market. But it doesn’t mean stock market is safe, sometimes companies will go bankrupt then investor has to face big loss in stock market.
While doing investment in stock market people should have to take care some factors about the company, like who is the owner, company’s background etc. Also person should do some research on the web about the company.
One more thing about stock market that it is country specific and deal in business and currencies according to region. There are set of business hours that typically follow the traditional business day.
Lets checkout the process of forex trading now:-
In forex market, people do trading of currencies. Forex market is the largest liquid market in the world. Forex market turnover is more than 4 trillions a day and include all types of currencies.
Forex trading is nothing else just a simultaneous process of buying and selling currencies. The good thing in stock market is, it’s not country specific. Anyone can invest on any kind of currencies. It’s a very safe type of trading as its related to whole country currency not particular company or sector. If currency goes down after then people do not face big loss. So there is huge difference of investment in stock market and forex market.
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The main difference between stock market and forex trading is, Stock market is simply a trading of stocks for profits or investment and In forex market, people do trading of currencies. Forex market is the largest liquid market in the world.