FOREX STOCK MARKET

INVEST YOUR MONEY IN FOREX STOCK MARKET OF THE WORLD

The Forex stock market is the global securities market which is also considered as the local stock market. The stock market is one where the buyer can buy the shares of the companies and sells the stocks during its growth of the value. The Forex stock market is also the similar type of market where instead of the stocks the global currencies are used in the market. The size of the Forex stock market is very high compared to all the other markets in the US. It involves various currencies in the world which has the high liquidity. This indicates that there always exist a buyer and seller for these currencies globally.

CURRENCIES INVOLVED IN THE FOREX

The currencies involved in the Forex stock market is a small set of the major currencies in the world. They are the US dollars, British pounds, Euro, Japanese Yen, Swiss Franc, Canadian dollars, and the Australian dollars. As these currencies have the high liquidity they are mostly demanded in the global market. If the individual feels that there is a growth in the value of the currency of a country, then he buys the currency at the expense of his currency. At the end of the day, the buyer will gain the increased value of the currency. The trading procedure in the Forex stock market starts at the Sydney every morning and starts roam over the world and reach the Sydney the next morning. As it involves the duration of a single day, the investor can track the situation and respond accordingly to the change in value.

FOREX VS STOCK MARKET

There are many notable differences between the Forex and the stock market in the country. They are

* The stock market depends on many industries or business where it is not involved in the Forex markets.

* The volume of the trade occurring in the Forex market is very large when compared to any of the stock market in any country.

* The Forex market deals with the cash and the currencies which can be liquidated easily whereas it cannot be done on the stock markets.

* The Forex market is global where the stock market is confined to a particular region of the country.

* The Forex market is continual trading which has no time limits as the stock markets.

* The stocks in the stock markets depend only on the currency of that country. In Forex, it depends upon the various global currencies.

The difference in these markets will be useful in understanding the Forex market clearly and it imparts the basics of the Forex stock market.

PROS AND CONS OF THE FOREX

The Forex stock market involves a very low investment and it does not charge any commission and transaction charges. As it cannot be monitored at all the time, there may be a chance of losing the money. The Forex market is difficult to adopt in initial stages due to the difficulty involved in the market and the presence of the market leaders.