The Internet has provided us with a way to trade and invest in various financial markets with convenience. Case in point, you can already do Forex online trading. Some people find that trading in the currency market is better than trading in stocks.

1. Should I Trade In Stocks Or
In Currencies?
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2. Thanks to the Internet, trading and investing in different financial markets can be done
conveniently. Case in point, you can already do Forex online trading. Many people prefer
Forex trading over stock trading. Others say it is the opposite. In this article, we will be
discussing some of the difference of the currency and stock markets.
One of the major dissimilarities between these markets is the size, with Forex dwarfing the
stocks market. Just last year, the average traded value for the currency market was around
$4 trillion daily. The size of the Forex market is because many individuals are enticed by
its convenience, impressive liquidity, twenty-four hour trading, and the high leverage that is
available.
Online Forex trading is convenient in the sense that you only have to focus your efforts on
seven major currency pairs. If you trade in stocks, you
would have to choose among 10,000 options to find one
with the best earning potential. The liquidity of the Forex
market can be explained by the fact that you don’t have
to wait for an uptick to initiate a sale, which is usually
seen in the stock market. The market opens at 5PM EST
Sunday in Sydney and moves along different time zones
until it closes by 5:00 PM EST in New York. In contrast,
the trading hours for stocks are limited to exchange
hours of your region’s trading center, which is typically between 9:30 AM and 4PM, Monday
to Friday with the exception of market holidays.
As mentioned earlier, higher leverage is available for market participants of online Forex
trading. In the United States, the leverage you can get when trading currencies can reach
up to 50:1, which is substantially higher compared to the 2:1 leverage available for those
trading in stocks. The market’s liquidity is also one of the factors that can explain the
amount of leverage available to currency traders. However, if you want to trade in the
currency market, you have to be prepared for the market’s volatility.
Exchange rates are influenced by various variables, including socioeconomic and political
ones. Even natural calamities can influence the supply and demand for a particular
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3. currency. For those who have low risk tolerance, the stability of stock trading can be more
appealing. Then again, the stock market often hits a lull, which results to shrinkages in
both trading volume and activity. As a result, there may be instances when taking a short or
long position is particularly challenging. While Forex is more volatile, there is opportunity
to profit in both rising and declining markets.
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