Compare Forex and stock market
There are approximately 4,500 stocks listed on the New York stock market. Approximately 3,500 stocks listed on NASDAQ. You will select stocks to trade? You have enough time to study the company until then?
In the forex market, there are some dozens of currencies traded, but the majority of those who operate in this market often traded 4 major currency pairs . Not that the focus tracking 4 major currency pairs is a lot easier than having to focus on stocks thousands of stars?
forex market is the seamless market, operating 24 hours. Most exchanges are open for business as of 4 pm Sunday EST and continuous operations for the 6th and 4 pm EST, ie forex market started its operation from light 2nd to 7th morning in Hanoi time.
Most forex exchanges do not charge a commission or transaction fees in forex trading online or via phone, combined with narrow differences in trading, consistency and transparency of the market, transaction costs forex is much lower compared to other markets. Most forex exchanges get reimbursed for their services is due to buy-sell spread (bid-ask spread)
Your transaction is carried out immediately in the normal conditions of the market. In these conditions, usually the price displayed when you make a transaction will be the transaction price. You can make direct transactions under the exchange rates displayed online in real time.
Please note that there are many forex trading floor only ensure the implementation of the order to stop, limit, entry of average market conditions often. Transactions during the period where market volatility is the state of "normal market" or in other words: the state of "not normal" state of the market is that exchange rate volatility a "no normal ", it's like in Hanoi traffic at rush hours in the year 200x so
The transaction is instant place in most of the time, but in the period where market "fluctuations ", the transaction may be delayed.
Unlike the stock market or other kinds of physical market, with no restrictions on short sales in the forex market. The business opportunities in the forex market always exist without depending on whether the market is up or down, the business opportunities are always present whenever the market is moving. So you always have the opportunity to participate in trading whenever the market either up or down.
in the transaction The center brings many benefits to the business. While working, there is a problem that the transactions at the broker center always have the involvement of a 3rd unit: intermediate. Any intermediary between the buyer and seller in terms of safety, whether or act as a tool are the charges for that. The cost may be time or money, the larger the size of the higher costs and the longer time transaction.
Transaction Spot forex, on the other hand, is decentralized, which means exchange rates may differ from the various forex exchanges. The competition between them is fierce, but you almost always be sure that you get the best deals. In the forex market, the transaction is fast and cost far more than any other market, the traders in forex trading market faster and with much cheaper cost.
in the stock market, how many times have you heard the news (gossip) as "fund A" was selling "X" or are buying "Y"? The stock market is very sensitive to rumours or large transaction, it is very easy to be driven by large trading funds.
In spot trading (spot trading), massive size of the market forex making ability of any one fund or a bank transaction that is capable to handle the market becomes very small. Banks, trading funds, governments, financial institutions, ... and a large number of individual investors are only part of the organizations and individuals involved in the forex market, where that high liquidity is unprecedented.
you track recent TV? You have heard of the stock of a certain company and an internet analyst at a brokerage firm is reputable is accused of keeping its recommendations, such as the recommendation to "buy" when stocks are declining rapidly? It is the nature of the relationship. No matter whether the government had to intervene and act to prevent this kind of activity, we have not heard the end of the story.
IPOs are big business for the enterprise itself issuance stock and securities brokers. This is the relationship mutually beneficial and analysts that work for the broker that required companies as customers. Therefore catch-22 will never disappear (The phrase "Catch-22", "a situation that has the problem that the only solution is denied by a circumstance inherent in the problem or a rule)
Bottom line is that the "investors" in the stock market is easy to be affected by the views, the "commentators" of the "analysts", so the stock market are things "Suddenly want to cry. "
forex market, as one of the main market generating billions of dollars in revenue for banks in the world and is a necessity of the global market. Analysts in the forex market has very little impact on exchange rates, they only analyse the market, and if not paid, I'm not sure they can do it or not
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