Forex versus Stocks!!

At the time the company is in good condition, then the company earns a profit, and increased stock value. Shareholders can sell their shares for a profit or hold on to stocks for more profits in the future. Sometimes companies will issue dividends - part of the profits distributed to shareholders.

Shares traded on the stock market. Most stocks are listed only on one exchange, although large companies may have several listings on the stock market.

Sometimes stock can be bought on margin, which means that the investor borrows money to buy shares. The level of margin is usually around 50% - the investor can borrow as much as half the value of shares.


The Foreign Exchange Market (FOREX) market is very different from the stock market. FOREX is short-term market. Most traders enter and exit transactions in the 24-hour period - sometimes within minutes.

FOREX is the largest financial market in the world. This is a market that handles transactions worth $ 1.5 trillion every day. In comparison, all U.S. stock exchanges combined handle daily transactions worth about $ 100 billion. Large volume of FOREX means that it is one of the most liquid market in the world. There are always buyers and sellers for any type of currency because the world economy depends on the movement of goods from one country to country. The stock market is less liquid, because the participants may choose to hold their investments or move to another market.