Trading that takes place between two counties with different currencies is known as forex trading .The foreign exchange market is also known as the FX market, or the forex market. The forex market is one that is not based on any one business or investing in any one business, but the trading and selling of currencies.
The forex market is the vast trading that occurs in the forex market. The forex market is one that involves governments, banks, financial institutions and those similar types of institutions from other countries.What is traded, bought and sold on the forex market is something that can easily be liquidated, meaning it can be turned back to cash fast, or often times it is actually going to be cash. From one currency to another, the availability of cash in the forex market is something that can happen fast for any investor from any country.
The difference between the stock market and the forex market is that
the forex market is global, worldwide. The stock market is something that takes place only within a country. The stock market is based on businesses and products that are within a country, and the forex market takes that a step further to include any country.
The stock market has set business hours. Generally, this is going to follow the business day, and will be closed on banking holidays and weekends. The forex market is one that is open generally twenty four hours a day because the vast number of countries that are involved in forex trading, buying and selling are located in so many different times zones. As one market is opening, another countries market is closing.
The stock market in any country is going to be based on only that countries currency, say for example indian rupee(INR), and the INDIAN STOCK MARKET . However, in the forex market, you are involved with many types of countries, and many currencies. You will find references to a variety of currencies, and this is a big difference between the stock market and the forex market.
Kelvin says
Nice post! At first I only thought of foreign exchange as trading of currencies. I don’t know then how and why it is becoming popular this days until I got to visit this site fxexchangemarket.com which gave me a thorough understanding about it.