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Sunday, April 12, 2009

A Look at the Forex Exchange Market vs the Stock Market

By Gugu Martini

The FX market is also referred to as the foreign exchange market. When trading occurs between two countries who have dissimilar varieties of money they lay the foundation for the FX market this is the foundation of the trading patterns in this market place. set up in the early 70's the Forex market is over 30 years of age where you are not investing or dealing in business enterprises rather it is established on the trading of monetary systems.

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

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

The difference between the stock market and the forex market is that the latter is global or worldwide. While the stock market is more country specific and is based on businesses and products that are within a country, the fx market goes further to involves any country.

The business day for the stock market typically which typically follow the traditional business day this means that it is closed on 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 another countries market is closing so this is the continual method of how the forex market trading occurs.

Every country's stock market is going to be based on only that countries currency, say for example the Japanese yen, and the Japanese stock market, or the United States stock market and the dollar. compared to the fx market you are involved with many types of countries, and their currencies. There are references to many different currencies and this is a big difference between the stock market and the forex market. - 23162

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