Foreign Exchange Market Vs Stock Market An Interesting Comparison
The dealing of money between two countries that have distinct currencies can be called the foreign exchange market. The currency market is often misconstrued as the stock market, but the forex market clearly only deals and trades in money. The difference between the two markets is the in depth trading that happens on the currency market. The amounts of money that pass thru the Fx business can be remarkable, easily reaching in to the trillions daily. The amounts of cash are far bigger than that of the exchange.
The cash traded, sold and acquired across the foreign exchange market can be efficiently liquidated, ergo it can be converted to liquid cash fast. This is the huge benefit to financiers wanting to deal between two money in distinct countries, the proven fact that it can be done at great speed. The fundamental difference between the forex market and the stockmarket is the proven fact that the FX market’s deals are around the world. The stock market will probably deal from within a country and sell products and business native to that country.
World money transfers are continually taking place around the planet and therefore the market should be open for business 24 hours a day. The huge number of countries that deal in currency trading, purchasing and selling are naturally going to be positioned in distinct timezones. When a Currency market is shutting down on one part of the planet another is getting started for work, creating an infinite progression of worldwide trading. The stock market however has set times of closure and will also shut down for bank holidays and weekends, the workshy fobs, just fooling!
Currency is one of the major differences in between the two markets. For instance : the United Kingdom market will only work with UK pound ( GBP ) / Sterling or the States will obviously deal in US dollars both using their native currencies. The Foreign exchange market nevertheless, will be involved in countless currencies from numerous nations.
1929 The Great Crash. – a video about the stock market crash in 1929