Trading Advantages: Forex vs Stocks

 1.    The Forex Market is the busiest financial market in the world, open around the clock.


The foreign exchange market is the world's biggest, with daily liquidity of around $4 trillion. In other words, the foreign exchange market is 53 times bigger than the $74 billion in daily stock trades on the New York Stock Exchange. As a result of the forex market's vastness and liquidity, you may enter and exit deals of almost any amount at virtually any time with lightning-fast execution.


Unlike the stock market, which only allows trading while the markets are open, the FX market never closes. A 24-hour forex market, the opening of the Sydney and Singapore markets begins at 5 p.m. (ET) on Sunday and closes on Friday at 4 p.m. Due to the fact that the market is open from dawn to dusk (Tokyo opens first, then London and New York close), you may go in and out at any time, without having to wait for an opening bell or experiencing a market gap.


2.    Few major currency pairs compared to thousands of different stocks.


It's almost hard to keep up with all of the NYSE and NASDAQ's hundreds of stocks at the same time as choosing the ideal one to invest in. With just seven main currencies in circulation, keeping track of a currency pair is significantly simpler. You will be comparing one currency against another since currencies are exchanged in pairs. Forex trading involves purchasing one currency and selling another at the same time. It's easier to keep track of your time when there are just seven main currencies to consider.


3.    Bears and Bulls Have the Same Chances


Regardless of market volatility, trading possibilities remain in the currency market. To put it another way, whether you're short or long, your chances of making money and taking risks are the same. Short selling is very acceptable. You may be on either side of a currency pair at any moment since currency trading always entails purchasing one currency and selling another at the same time.


It is now possible to be a bull or a bear on just one currency with the new Dow Jones FXCM Dollar Index without having to trade the USD in a pair. If you merely have an opinion on the USD, you have the option of going long or short on the US dollar.


4.    Leverage


A lower deposit is required for a higher contract value in the FX market. There is fifty times greater leverage in forex trading than in the stock market, this means that a trader may borrow money from a broker. The greatest leverage you may use in stock trading is 2:1, however, in forex trading, the leverage can range from 50:1 to 200:1. An increase in the amount of leverage may result in a substantial return, but keep in mind that leverage has two sides: the benefit and the risk. It's possible that using leverage may result in both larger losses and larger gains.


5.    Easy Access to Free Forex Training and Education


Trading FX does not need racking up student loan debt or earning a college diploma. New traders may practice trading using demo accounts provided by most forex firms before investing real money. In addition, the Internet offers free resources such as studies, analyses, instructional articles, and videos.

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