Differences in stock markets and FOREX markets?

Discussion in 'Forex' started by BigGun, Jul 24, 2002.

  1. BigGun

    BigGun

    Can someone explain ( or refer a good site ) the differences between the common stock markets and FOREX markets? That's something I understand a bit and would benefit if I could compare it to FOREX somehow.
     
  2. I am not a forex trader, but I can tell you that forex trading is futures trading, and therefore a lot different than stock trading.
     
  3. Currency futures, foreign
     
  4. The vast bulk of FOREX trade goes through the interbank market; individuals basically get leftovers with either currency futures or through a "direct" forex trading firm that will take the other side of your trades.

    Forex is a market of relative values; going long the euro means you are short the dollar, etc.

    If you are just looking for a pure intraday trading vehicle, I'd recommend sticking with equities or index futures; unless you have a special interest in international money supply I'd say starting out that you are too many steps removed from the heart of the action in forex to really be able to determine what is actually moving the market. Hope this helps.
     
  5. BigGun

    BigGun

    Maybe I should have Clearfield myself better. I am trading stocks & futures and would like to know the main differences in trading within the new Spot FOREX markets. I am not happy with the way stocks are moving and would like to add currency to my everyday trading activity. Thanks in advance
     
  6. UK2004

    UK2004

    I think people are a little confused here, the standard interbank market in forex which is foreign exhcange is the spot market this is currencies exchanged for delivery in two working days or one for the canadian dollar. Short term foreign exchange trading is great fun although being in a dealing room makes things a little easier. I only speak from experience being in a bank but I am sure you oculd trade intraday price action and make good money depends on how much capital you have to put up.
     
  7. Stock market is difficult for common man . Forex is easy to understand and do for people .
    Forex market works 24 hours , in stock we can do business just from morning to evening .
    Forex is two way market here we get profit in both sides low or high market positions.