Forex or Stock Market? Which is better?


Forex or Stock Market? Which is better?

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Forex or Stock Market? Which is better?

What is the Forex market?
The forex or ‘foreign exchange’ market is a marketplace in which currencies can be bought, sold, and exchanged. The participants in this market range from banks, individual retail traders, and even travelers in need of local currency.To get more news about Forex vs. Stock, you can visit wikifx.com official website.

The price at which the market participants buy or sell currencies is determined by its exchange rate, which is the value of one currency in terms of another - how much of one currency you need to buy one unit of another currency.

For example, the Euro is worth 1.21 U.S. Dollars, meaning it takes $1.21 to buy one Euro.On a daily basis, trades are performed millions of times by many different individuals and corporations - on average, the forex market trades upwards of 5 trillion U.S. Dollars per day!

This ‘price’ however is not fixed and always changes.This is because exchange rates are driven based on supply and demand - the higher the demand, the higher the price, and vice versa.

Exchange rates can change depending on things such as world events, news as well as other (sometimes even unknown) factors, though changes on a daily basis are generally very small.Most forex traders hold their positions for a few hours or days.

What is the stock market?
What exactly is a ‘stock?’ If you purchase a stock or ‘share’ of a company, you are essentially buying a piece of it.

The more shares in a company you purchase, the greater your percentage of ownership. Most companies also pay out dividends to stockholders on an annual or quarterly basis.A dividend is a sum of money - the greater your ownership, the more money you would receive. Stock market traders generally hold their positions for several days - all the way up to months.

The stock market is a collection of exchanges that trade various stocks in different companies. Shares can be bought and sold to others via this network of exchanges (similarly to buying and selling currencies).Unlike the foreign exchange market, which operates 24 hours a day every weekday, the stock market is open for 8 hours, 9:30 a.m. to 4 p.m. Eastern time (on weekdays).

The volume traded per day is $200 billion, considerably less than the $5 trillion traded in the forex market. If you would like a piece of the billions (and trillions) of Dollars traded per day, you may consider learning to trade stocks or forex.

Forex Vs Stocks
The main reason why anyone would be interested in the stock or forex market is most likely to make money, or to hedge trade. But how exactly does one make money trading in one of the mentioned markets? Will this help determine which market is better?

How can I make money Forex trading?
The answer to this question is very simple for both stock and forex trading: buy low, sell high. However, the difficult and more complex part is actually finding the ‘highs’ and ‘lows.’

There are two main ways to do this: technical and fundamental analysis. There is no clear-cut answer about which ideology is better, and thus the debate between technical and fundamental analysis is highly dependent on the individual and their personality.

Both technical and fundamental analyses aim to predict future price movements based on the principles of supply and demand.

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