Difference between forex and stocks trading to take note?

There are many differences between stocks and forex trading.
The main difference is the assets that are traded. Currencies are traded in forex whereas in stocks a portion of a company's share is traded.

Secondly, the trading volume of both the markets. The Forex Market has the highest trading volume per day with respect to any other market.

The Forex Market is more volatile than the Stock market.
Both the instruments are profitable and depend on the trading style of the trader. For this reason we can differentiate but not compare them.

 

The general difference between forex and stocks is that in the latter you trade shares of companies but in forex you trade currency pairs. Forex provides more liquidity and can be more rewarding.

 

The forex market is more volatile as compared to the stock market providing higher opportunities for making profits.
In stock trading the open position can be carried overnight without any type of charges but while trading forex if the position is held overnight swap fees can be applicable.

 

As in both the markets different assets are being traded, it is quite understandable that different variables will have different market conditions. From volatility to liquidity, everything would be different.

 

there are quite a few differences between stock vs forex markets. Stock tends to be more volatile and usually better for swing trading than day trading. Furthermore, not all stocks have equal liquidity so you want to trade major stocks more than penny stock.

Forex market is the biggest market in the world so liquidity is always guaranteed. Currency tend to also be less volatile than stock so the use of leverage is necessary when trading FX. There is also spread to consider.

Each has it own merits so pick whichever seems suitable for you, or you can find a broker offer both to try both of them out.

 

its a good description with some fine line. thanks

 

In forex trading, traders make profits from making frequent small trades using scalping or swing trading strategies whereas in stock trading, traders make profits from longer trades and use strategies like swing or position trading strategies.

 

right now i am busy with price action in demo to see the performance how it works.

 

i think the biggest difference between stock and forex is trading hours as you can trade forex 24/7 over multiple markets but you can only trade stock through 1 market so the time limit is a huge factor.

 

The forex market is open for 24/7 whereas stock market trading hours depend on specific regions and exchange