FOREX TRADING v/s STOCK TRADING
You must be wondering why Forex Trading is better than Stock Trading. The biggest advantage of trading forex is that it is a 24 hour market. You can trade anytime during the day. You can choose your own time when you want to trade or when your mind is free enough to analyse things easily or when you are done feeding your dog, you children are sleeping and there is no one to disturb you.
It provides you more liquidity as Compared to the stock market. Forex Online Trading goes up to $5.3 trillion per day as compared to the stock market at $58.4 trillion a year. Hence providing a lot of liquidity. So when you are putting your trade you need not wait to find out if there is the other side (Buy/Sell) available it will get executed in seconds or even less than that.
Forex Trading is a decentralised market i.e. it has no centralised exchange controlling the same Like the New York Stock Exchange (NYSE), New Zealand Exchange etc. that means no single entity is powerful enough to move the market by itself. You have no chance of insider trading. The major news or information effecting the prices are available to all as there are number of factors effecting it is also difficult to make out which event can make a price to fluctuate more. You also pay fewer commissions on Forex Trading as compared to Stocks.
You have more volatility in Forex Trading than Stocks as thus providing better opportunities to gain. As there are a lot of factors effecting Forex Trading you have more volatility as there is always an economic event going on somewhere in the world which would be effecting the currency in one way or other.
The leverages provided are also very good; those can go up to 1000:1 also. However it could be dangerous sometimes to have high leverage but it is good having it so that you can use it accordingly in your favour.
Summarizing it all I would say Forex Trading is better over stocks as it is 24 hrs. Market more liquid and volatile than Stock Markets thus providing more opportunities.
It provides you more liquidity as Compared to the stock market. Forex Online Trading goes up to $5.3 trillion per day as compared to the stock market at $58.4 trillion a year. Hence providing a lot of liquidity. So when you are putting your trade you need not wait to find out if there is the other side (Buy/Sell) available it will get executed in seconds or even less than that.
Forex Trading is a decentralised market i.e. it has no centralised exchange controlling the same Like the New York Stock Exchange (NYSE), New Zealand Exchange etc. that means no single entity is powerful enough to move the market by itself. You have no chance of insider trading. The major news or information effecting the prices are available to all as there are number of factors effecting it is also difficult to make out which event can make a price to fluctuate more. You also pay fewer commissions on Forex Trading as compared to Stocks.
You have more volatility in Forex Trading than Stocks as thus providing better opportunities to gain. As there are a lot of factors effecting Forex Trading you have more volatility as there is always an economic event going on somewhere in the world which would be effecting the currency in one way or other.
The leverages provided are also very good; those can go up to 1000:1 also. However it could be dangerous sometimes to have high leverage but it is good having it so that you can use it accordingly in your favour.
Summarizing it all I would say Forex Trading is better over stocks as it is 24 hrs. Market more liquid and volatile than Stock Markets thus providing more opportunities.