Forex Stocks, Tough Choice!
Just imagine you had the power to decide which stocks of which company could be sold when and how. Just also imagine you also had the power to do the same with the currency reserves of more than one country. This is just the kind of activity that would be possible if you were a trader both in stocks as well as in foreign exchange. In short a trader in forex stocks.
When you are playing this particular market
For a person who has registered himself with the stock exchange of a particular country, the market that he keeps observing will probably show a lot of changes with a 24-hour period. Some stocks may rise while some fall. It is possible that fortunes can be made and some wiped out in a matter of minutes. This is the name of the game in the stock market. The forex market is slightly different. When you are playing this particular market, the rates of interest that keep fluctuating, sometimes on the higher side and sometimes on the lower, you stand to benefit most of the time. It is therefore important to trade in forex stocks as often as you can to maintain a proper balance.
Who is a broker
One important factor that needs to be understood by a person who is a broker in both these areas namely forex stocks, is that the financial health of one is closely related to that of the other. Let me explain in this in a more simplified way. Let us imagine a situation in a country where a natural disaster has struck wiping out millions worth of property. Not only has there been a colossal loss of lives, but there has also been a huge loss of livelihood. It is estimated that millions will be required to reconstruct the country and bring it back to what it was before the disaster struck. When saving of lives becomes a priority, it is not possible for anyone to think of forex stocks. Rebuilding a lost life is a painful and a costly process. In a country like this, there is no question of ensuring the health of any kind industry because in reality quite a few of the industrial developments that had taken place in the last few decades were totally wiped out. In this situation the country and its government has no other alternative but to borrow a large amount of money for reconstruction purposes. In the process of doing so, the government is fully aware of the fact that they have nothing much to show as collateral or as a kind of security for the loan that they propose to take. This is because the value of all their stocks has gone down. This has also resulted in the sharp decline of their currency. Either way, they lose; it will take a long time to recapture lost ground and get back the financial stability in forex stocks that they had enjoyed earlier.