Forex Stock Market

Forex Market Vs. Stock Market – Which Is Right For You?

You have probably traded stocks before, but have you ever traded currencies? Currency trading goes back thousands of years and was the first market used by nations, traders and merchants to facilitate the open market process. The trading of national currencies has its own market called the Forex, which is an abbreviation for The Foreign Currency Exchange Market. The Forex Market allows individuals, companies, banks, governments and nations to take advantage of currency fluctuations in the world market to profit from judging the correct direction a currency moves against another currency. Currencies are traded as currency pairs.

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The Appeal of Forex Trading Versus the Stock Market

The Forex trading has become more appealing than the stock market during recent years for many reasons. The chance of a much higher rate of return is the main reason. While currency on the Forex may only fluctuate only one or two percent on any given day, investors who can see where it is going, will properly plan an entrance and exit strategy. That is to say when to get in and how to get out. Another appealing fact is that there is more leverage in the Forex. For example, $100,000 US dollars can be bought with as little as $10,000 leverage when purchased through margins. Buying currency this way allows for the chance of higher returns, with less risk, even if the return is only one

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Foreign Exchange Market is Different From the Stock Market

The foreign exchange market is also known as the FX market, and the forex market. Trading that takes place between two counties with different currencies is the basis for the fx market and the background of the trading in this market. The forex market is over thirty years old, established in the early 1970′s. 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.

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