News |Views |Reviews

The foreign exchange or the FX market is commonly called  the forex market.

When you are trading currencies, you are in fact buying currency of one country and selling the currency of the currency of another country.

The forex market is very young compared to the stock market and was  established in the early 1970’s. The forex market is one that is not based on performance of  businesses or investing in  business, but it involves trading and selling of currencies.

Compared to  stock market,  the forex market involves trading of currencies on a very large scale and transaction volume. More than two trillion dollars are traded daily in the  forex market.

 The forex market is one that involves the state of economy of countries, governments, banks, financial institutions and those similar types of institutions from other countries. The amount traded in forex masrkets is much higher than the money traded on the daily stock markets worldwide.

Forex market offers high liquidity. The availability of cash in the forex market is something that can happen fast for any investor from any country and this is major factor that is attracting more investors to Forex markets.
Forex market is truly global and operates worldwide for more time during the day. 

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 limited  business hours of operation. Stock market operates by  the business day with set working hours, and is  closed on banking holidays and weekends. The forex market is one that is practically open twenty four hours a day because of different times zones of the vast number of countries where forex trading takes palce. While one market opening, another  market is closing.

The stock market of  country is controlled by a regulatory body of that country and is   based on that countries currency, say for example the Japanese yen, and the Japanese stock market. United States stock market involves dollar for trading. However, in the forex market,many currencies &  many countries.

Popularity: 22% [?]