Difference between Forex and Stocks

The Forex market does not require large capital to start trading. You can open an account starting from $ 5, unlike the stock markets, where there are no good shares at this price, if any, the broker may not accept the execution of this position

The stock market can be easily controlled by the Marker Makker, two large trading funds that enter a controlled share to raise its price and conduct on individuals. While the currency market, a trading fund can not control any currency or pair as a result of the intervention of central banks and major banks in the country such as JP Morgan Sachs, Deutsche Bank, UBS and last but not least Barclays Bank.

The volume of trading in the currency market is larger than the volume of trading in a group of exchanges around the world, where we mentioned that from $ 3 trillion to 4, which is most estimates, but the stock market does not exceed the volume of trading several billion.

You can trade 24 days 5 days a week and stocks 8 hours within 5 working days. If the stock market is closed, you can not trade it if you want to buy a Facebook stock on the American stock exchange. Unlike the currency market, the dollar can be bought or sold at any time of the day.

If you want to seize the opportunity to trade in the stock markets, you need to analyze hundreds of shares, which is considered a lost effort as a result of the control of the board in the stock, such as what happens in most Arab stock exchanges or control a fund in a stock that moves the news to serve reconciliation, as happens in some shares The world is but a few currencies and the pairs that are commonly traded are known and do not exceed ten pairs.

The Forex market is based on a principle that rewards the markets. There is no anonymous news. All the news of the currency, if you wish to raise the interest rate on the dollar, will not be secreted or whispered in the ear of the market makers, unlike the stock markets, which do not provide all the information and news to everyone quickly.

One of the most famous differences between the stock exchange and the stock exchange is to provide forex brokers for leverage starting from 1 to 1000 if you trade a thousand dollars and leverage 1 will be $ 2000 thousand, but the stock markets do not give you such a big lever.

The number of transactions that can take place a week, for example:

There is no minimum trading limit in Forex. The trader can open dozens of trades if the account allows and can not open any trading transactions on condition that, if any, account fees are paid as some brokers charge fees on the fasteners that do not trade within a certain period of time (Frozen).

Forex traders are often advised to follow a specific trading strategy, ie, this strategy and for those who do not know the meaning of the word trading strategy.

Trading strategy is simply a mechanism or a way to open trading deals, whether selling or buying fixed rules have a capital management makes trading something routine without thinking so can succeed and achieve profits.

It is this strategy that dictates the number of deals we open, which determines the size of the open contract and also determines the number of transactions that will take place over a certain period of time, usually a week or a month.