Differences in Stock Trading with Forex Trading

Just as in stock trading, the Forex trading is also its main purpose is to benefit from the difference between the price movement (speads). But there is a miraculous thing that distinguishes between them. Many people think that Forex is more 'intense' than stock. Really? Here we will see the comparison / difference between them.


The Differences in stock trading with forex trading. Let you know more about the fundamental differences over this. If trading shares that would benefit if we buy the stock price goes up and would like to have it, well if this forex trading can also mendapatkankan profit if the price goes up but you do not be afraid if the price drops later you will lose the profit, put a way your thoughts like that, because if it goes down we are still got an advantage.

Capitalization
Nothing is greater than the Forex market, the market and any kind. Forex is the largest market remains to be said liquid. For comparison, if we look at buying and selling in the stock market range from Rp 4 trillion IDX - Rp 7 trillion / day, while the world market Forex USD 3.8 trillion, which means 1000 times larger. You can try to count how many zeros its own when converted to dollars.

24-hour market and nonstop
Forex market is the market 24 hours nonstop. Brokers are open from Sunday at 14:00 ET until Friday at 16:00 ET (or Monday morning at 2:00 am until Saturday at 0:00) with customer service available 24/7. With the ability to serve the Australian market trading, Asia, Europe and the U.S..
You can customize your own training schedule. Compare with the local stock exchange (IDX) is open only on weekdays (Monday - Friday) 09.30 - 16.00. For those of you who work in an office, it would conflict with your work schedule.

Commission-free
Most Forex brokers do not charge an additional fee (commission, swap or transaction costs). Brokers simply take the services of a spread between buy / sell listed in bd and ask. As for the stock (IDX) you have to pay a fee of 0.15% - 0.3% of the sale / purchase.

Speed ​​of transaction / Order
You do not need to queue as soon as possible to make transactions / orders. Unlike with stocks, where you have to wait in line for your order to be realized. In forex unnecessary, extremely large market allows the amount of buyers and sellers is not limited. However keep in mind that the broker can serve your order as soon as possible to record the normal market, a condition where extreme price movements (volatile), the broker may delay your order but only in a moment or a few seconds.

Potential Advantages of bi-directional (two-way opportunity)
Unlike the stock or equity, in forex you can get the benefit of two-way, both when the market goes up, down, or where prices / the market will move. In the short term sell existing shares (aiming to make a profit when stock prices fall). Yes, it is similar, but you can not do it on all stock, only on certain stocks.

Complexity
There are approximately 4,500 stocks listed on the New York Stock Exchange. Other 3500 listed on NASDAQ. Approximately shares which would you choose? Have enough time to stay abreast of the movement of so many shares? In forex trading, there are dozens of currency being traded, but most markets traded only on the 4 major pairs (USD, EURO, GBP, YEN). Is it not much easier to keep an eye on the four pairs of the thousands of stocks?

Free bookie
You'll often hear the term 'fried' in stocks, particularly in the local stock market (IDX). Well, why a stock can be fried? Because there is one financial institutions, with a strong enough funds to buy a stock continuously. This makes as if a stock is rising, and many individuals traders are affected to buy the stock (broker got profit). What about forex? Quite simply, about how much capital needs to move the market worth USD 3.8 trillion? Who can do that? China may be, because according to the information that China has foreign reserves of $ 4 trillion. But whether the country would risking all the money for just one day of trading?

Rumors
In a rumor or gossip small will be able to move the price. Especially if the rumors are packaged in the form of a professional, such as a stock TA guide and do on TV or radio. Sometimes it can move stock prices. But in forex can be said impossible. Is it possible to spread the rumor reached each traders ears around the world? Please answer itself.

Anything else about the differences, you can add it here.