Foreign exchange market is different from the stock market

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Foreign exchange market is different from the stock market

The foreign exchange market is also known as the FX market, and the forex market. Trading is going on between two counties with different currencies is the basis for the fx market and the background of the trading in this market. The forex market is over forty years old. The forex market  is not based on anyone company, business or investment.  It's base on buying and selling (Trading) of currencies.

If you analyse stock market and forex.  The forex market is the bigger trading executed daily to compare with stock market. There is millions and millions that are traded daily on the forex market, almost two trillion dollars is traded daily. The amount is much higher than the money traded on the daily stock market of any country. The forex market is one that involves governments, banks, financial institutions and those similar types of institutions from other countries.

Bought and sold on the forex market is something that can easily be liquidated. It can be turned back to cash fast, or often times it is actually going to be cash. From one currency to another, the availability of cash in the forex market is something that can happen fast for any investor from any country.

Forex market is trading on global, worldwide but the stock market is something that takes place only within a country. The stock market is based on businesses and products that are within a country, and the forex market takes that a step further to include any country.

The stock market has set business hours. It  is going on business days only and will be closed on banking holidays and weekends. The forex market is one that is open generally twenty four hours a day because the vast number of countries that are involved in forex trading, buying and selling are located in so many different times zones. As one market is opening, another countries market is closing. This is the continual method of how the forex market trading occurs.

The stock market in any country is going to be based on only that countries currency, for example the Pound ( UK) in  UK stock market,  the United States stock market and the dollar. However, in the forex market, you are involved with many types of countries, and many currencies. You will find references to a variety of currencies, and this is a big difference between the stock market and the forex market.

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