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Tuesday, April 7, 2009

A Look at the Forex Exchange Market vs the Stock Market

By Gugu Martini

The FX market is likewise known as the international foreign exchange marketplace. Dealing can occur between any two countries who have unique types of currency they lay the foundation for the FX market as well as the background for the the dealing in this market The FX market is in excess of thirty years of age, established in the 1970's and is one that is not based on any one business or investing in any one business concern, but the trading and selling of systems of currency.

There is a difference between the forex market and the stock market is the vast trading that occurs there, an amazing two trillion dollars or more can be traded each day A much higher amount than the money that is traded on the stock market of any one country One of the only market that involves one countries financial institutions as well as government institutions and those that are comparable to another countries institutions

The items that are bought and sold on the fx market are easily liquidated this means that they can be turned into cash quickly if it is not already cash From one countries currency to another the availability of cash in the forex market is something that can be arranged for any investor regardless of what country they are in.

The biggest difference the stock market and the forex market is that the latter is global or worldwide. The stock market is something that takes place only within a country due to dealing with the businesses and products in that country but the forex market takes that a step further to include any country.

The business day for the stock market typically which typically follow the traditional business day so the stock market is closed on bank holidays and weekends. Whereas the FX market is open 24 hours a day because countries from all over the world are involved in trading selling and buying in a variety of time zones. When one market opens just as markets are closing in other countries so this is the continual method of how the forex market trading occurs.

The stock market in any country will be based on the currency of that country so the French francs, and the French stock market, so the Pakistani rupee and that Pakistan stock market or the United States stock market and the dollar. compared to the fx market where you are involved in multiple countries and multiple currencies. There are references to many different currencies which is the biggest difference between the stock market and the foreign exchange market. - 23200

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