Difference between forex and stocks trading to take note?

Discussion in 'Forex' started by helpme_please, Oct 9, 2019.

  1. Esha.J

    Esha.J

    High volume means traders can typically get their orders executed more easily and closer to the prices they want. Forex major pairs typically have extremely low spreads and transactions costs when compared to stocks and this is one of the major advantages of trading the Forex market versus trading the stock market.
     
    #41     Jul 7, 2020
  2. DevBru

    DevBru

    Really? A lot of active traded stocks with very high volume have 1 cent spreads and a lot of brokers are offering no commission.
     
    #42     Jul 7, 2020
  3. kroxobor

    kroxobor

    Probability density of stock returns is skewed to right (positive kurtosis). I think stock market growth expectations determine that. As far as I know it is not observed in currency pair returns because there are no such expectations. Does it mean that Fx trading is more random?
     
    #43     Jul 8, 2020
  4. I have tried both but I think forex is better then stocks, because Forex is easier to enter because many brokers do not ask for a minimum deposit and also you do not have to pay commission on every trade.
     
    #44     Aug 30, 2020
    Codrin likes this.
  5. Codrin

    Codrin

    Even i prefer the same. Forex over stocks.
     
    #45     Sep 1, 2020
  6. DevBru

    DevBru

    I wonder how many of those tiny few $100 accounts actually survive, probably not longer than a few weeks.

    I think those minimum deposits are a good thing, they take away the illusion that one should trade with such tiny accounts.
     
    #46     Sep 1, 2020
  7. kroxobor

    kroxobor

    At the end of the day, leverage, profit goals and risk per trade determines survival. Even $100 can last long but I agree a few would like to grow account by 1-2 USD, it a waste of time.
     
    #47     Sep 3, 2020
  8. They have different market behavior, which requires a totally different strategy to trade.
     
    #48     Sep 3, 2020
  9. kroxobor

    kroxobor

    What do you mean under market behaviour? Stocks and currencies are assets not market players and I really don't see differences in price movements on low and medium-timeframes. But I would say that stocks are more prone to growth because diminishing returns and hunt for yield is a macro theme that dominates. Sharp changes in currency exchange rate can prompt central bank interventions and traders are aware of that since it is a trade opportunity.
     
    #49     Sep 7, 2020
  10. What are your low and medium-timeframes? I'm talking about H4 and Daily here.
     
    #50     Sep 7, 2020