The foreign exchange market is also known as the FX market, and the forex market. Trading that takes place between two countries with different currencies is the basis for the fx market and the background of the trading in this market. The forex market is over forty 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.
The difference between the stock market and the forex market is the vast trading that occurs on the forex market. There are millions and millions that are traded daily on the forex market, almost five trillion dollars is traded daily. The amount is much higher than the money traded on the daily stock market of any country. 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. This is the continual method of how the forex market trading occurs.
The stock market in any country is going to be based on only that countries currency, say for example the Japanese yen, and the Japanese stock market, or the United States stock market and the dollar. 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.
It is best to know the important currency market trends before you start to trade. To take advantage of this opportunity, you need to know the key factors of the economy of the country you are considering to transact with.
This will enable you to identify when the next currency pair will go up or down. Then you can trade accordingly. However, there are methods that can assist you to increase your profits through Forex trading.
In the forex market, the most popular style of trading is to trade the trends in two different markets against each other. That’s a bit difficult to explain quickly here, but it should be said that in this style of trading, computers have helped a lot. Think about how many currencies there are in the world, and then think about how difficult it can be to keep track of all of them… and their relationship to each other. Then you’ll understand how important computers can be to trading the forex.
There are many types of software and programs that are designed to find these trends in various market, put them together, and actually tell you what to buy or sell and when. Called “Robots”, this type of trading has become very popular in the forex market.
To check out some of the best “robots” and “trend spotters”, check out the links on this page. All are used by thousands and have great track records.
Steve Gaghagen is an actor, vocalist, director, writer … and “Recovering” Realtor! Over the last several years he’s become a successful Internet and Network Marketer. Steve works from his home in glorious Big Bear Lake, California, and spends much of his time with his 3 dogs, Roxie, Cuinn, and Toby.