The basis for the Forex market is every trade transactions that occur between two countries with different currencies, this is also the background of trade transactions occurring in this market. Forex market is one of the trading market that is not based on one investment or any business enterprise, other than just trading and selling of currencies. Commodities are traded, bought and sold on the Forex market is a commodity that can be easily liquidated, meaning it can return quickly in the form of cash. Turnover of currency to another currency and availability of cash in the Forex market is something that need to be aware by any investors from any country who involved.
What is the difference between Forex market and Stock market? The difference between Forex market and Stock market is trading in large numbers that occur in the Forex market. More than millions that are traded daily in the Forex market and almost two trillion dollars traded every day. The amount is much higher than the amount of money traded daily in the Stock market. Forex market is a trading market that involves governments, banks, financial institutions and other types of other similar institutions of a country and involving the same parties from other countries.
Another difference between Forex market and Stock market is that the prevailing global Forex market, all over the world. While the Stock market only happens in a country, or just the internal of one country without involving other countries. The Stock market in accordance with activities focusing on products that are in the country, while the Forex market is taking further steps to involve other countries.
In addition, there are another differencies between Forex market and Stock market. The Stock market set a definite business hours. In general, the working hours of the Stock market will follow the business day and will be closed on banking holidays and weekends. While the Forex market is open 24 hours a day because a number of countries involved in Forex trading, buying and selling currency, is located in many different time zones. Some markets are opening transactions, while some others close their market transactions. This is happening constantly in the Forex market.
Lastly different, the Stock market in any country only based on the stated country’s currency, for example Japanese Yen and the Japanese stock market, or U.S. Dollars with the United States stock market. But in the Forex market, you will know that different types of countries and various currencies are get involved on it. You’ll find references to the various currencies that exist in this world, and this is the biggest difference between Forex market and Stock market.