The Forex and the FX Market are other names the Foreign Exchange market is known by. Trade between two different countries, using different currencies is handled by the fx market. The FX market hung its first shingle in the early 1970's, making it about 30 years old. The forex market does not deal with a particular business, but rather, it deals with the trading and selling of foreign currencies.
The type and vastness of trading in the forex market marks the biggest difference between the forex market and the stock market. A staggering amount of money is traded on the forex every day, probably around two trillion dollars. This amount is far greater than any amount ever traded in any stock market in the world on a daily basis. Banks, other financial institutions and governments around the world is what the forex deals with every day.
The only types of purchases the forex handles are those that can be converted into quick cash, but most of its trade is represented by direct cash. No matter what type of currency they use, cash is fast available on the forex market for any investor in any country.
Another thing the stock market and the forex differ from each other, is that the forex is globally present, while the stock market is only active in each individual country. The stock market only operates within a country. The main purpose of the stock market is to oversee trade between business entities within a country, while the stock market deals with international trade.
The stock market operates during regular business hours. Typically, the stock market opens during normal business hours, and it shuts down on holidays and weekends. The forex is open around the clock, seven days a week, to allow the possibility of trade for countries that are in different time zones. Due to the fact that some markets close when others just open, trade would not occur if the forex was not consistently open.
The trade overseen by stock markets can only occur in the currency of the country where the stock market is in. But the forex is involved with any country and any currency. You can find information and references in many different currencies, and that is the biggest difference between the forex and the stock market.
The type and vastness of trading in the forex market marks the biggest difference between the forex market and the stock market. A staggering amount of money is traded on the forex every day, probably around two trillion dollars. This amount is far greater than any amount ever traded in any stock market in the world on a daily basis. Banks, other financial institutions and governments around the world is what the forex deals with every day.
The only types of purchases the forex handles are those that can be converted into quick cash, but most of its trade is represented by direct cash. No matter what type of currency they use, cash is fast available on the forex market for any investor in any country.
Another thing the stock market and the forex differ from each other, is that the forex is globally present, while the stock market is only active in each individual country. The stock market only operates within a country. The main purpose of the stock market is to oversee trade between business entities within a country, while the stock market deals with international trade.
The stock market operates during regular business hours. Typically, the stock market opens during normal business hours, and it shuts down on holidays and weekends. The forex is open around the clock, seven days a week, to allow the possibility of trade for countries that are in different time zones. Due to the fact that some markets close when others just open, trade would not occur if the forex was not consistently open.
The trade overseen by stock markets can only occur in the currency of the country where the stock market is in. But the forex is involved with any country and any currency. You can find information and references in many different currencies, and that is the biggest difference between the forex and the stock market.
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