Equation
So also in stock, in forex trading, the main goal is to gain profit from the difference between the price movement. But there are several things which distinguish the two. Many people assume that forex is more 'sexy'. Let's see the comparison.
Comparison
Capitalization
No one is bigger than the forex market, in any market and any kind. Which remains the largest Forex. So we can say the forex market is very liquid. For comparison, if we look at the JSE stock market trading transaction is about 4-7 Trillion / Day. 're My world forex market is 3.5 Trillion Dollars (Remember in Dollars), which means 1000 x fold greater. You can try to calculate yourself how many zeros it:)
24 Hour Market and non-stop.
Forex market is 24-hours without limit. Broker open from Sunday at 14:00 ET until Friday at 16:00 ET with customer service available 24 / 7. With the ability to serve the U.S. market trade, Asian, and European markets, you can customize your own trading schedule. Compare this with the example of the local stock exchange (JSE), open only during weekdays (Monday till Friday) at 09:30 hours until 16:00. For those of you who work formally (office), surely this would clash with your schedule.
Commission-free
Most forex brokers do not impose additional costs (commissions or transaction costs). Brokers have taken services from the spread between the selling / buying. As for the shares (JSE) you must pay a fee of 0.15% s / d 0.3% of the selling / buying.
The speed of transaction / Order
You do not need to queue for as soon as possible on transactions / orders. Unlike stocks where you have to wait in line for your order to the realisasika. In the forex is not necessary, very large market which allows the number of buyers and sellers are not unlimited.
However keep in mind that the broker can serve your order as soon as possible with normal market note, a condition in which price movements are extreme (volatile), the broker may delay your order in a moment.
The potential advantage of two directions
Unlike with stocks or equity, in forex you can benefit both directions, both when the market goes up, down, or where prices / market will move. In the short term sell existing shares (aimed at a profit when the stock price falls), Yes indeed similar, but you can not do it on all stocks, only on certain stocks.
Complexity
There are about 4,500 stocks listed on the New York Stock Exchange. Another 3500 are listed on NASDAQ. About which stocks would you perdagankan / select? Have enough time to stay abreast on top of so many companies / stock?
In forex trading, there are dozens of currencies traded, but most of the trading market is on the 4 major pairs (USD, EURO, GBP, YEN). Is not four pairs much easier to control than thousands of stock?
Bandar free
You'll often with the word 'fried' in stocks, especially in the local stock market / JSE. Well, why a stock can be fried? Because there is a person / group of persons / financial institutions, with the fund market is relatively strong, constantly buying a stock. This makes as if a stock is rising, and many individual traders who are affected to the bandwagon to buy the shares. At the time the price had risen in accordance with the wishes of airports, airports as soon as possible to sell these shares (airports profit).
How about forex? Quite simply, kira2 how much capital needed to drive the market worth 3.5 Trillion Dollars, The point of money who is there that much.
Perhaps only in China because, according to information which could have four Trilyuan dollar reserves. But what would he risk to risk all that money just for 1 day of trading. :)
Rumors
In stock a rumor or gossip .. kecil2 an, will be able to move the price. Especially if the rumors are sometimes packaged in the form of distinguished professionals, such as stocks and guide TA performed on TV, radio, etc. .. Sometimes this can move the stock price. However, in the forex can be said is impossible. Is it possible to spread the rumor reached the ears of all traders in the world? You answered yourself:)
Will define
In forex trading, we are bound by a global / international financial markets around the world. When we play the local stock, then you should look is the Indonesian economy. And the local stock price movements (CSPI), will never be influential in the forex trade (such as the price of pair EUR / USD). But global conditions and sentiment is happening in the forex market, sometimes can affect up to local stocks or shares of certain countries. The reason is that today such as EUR / USD goes up (market / value of U.S. fall), it can be seen that the U.S. economy is down. Usually when the U.S. economy down U.S. stocks are also on the down, the next may be impacting the JSX.
So also in stock, in forex trading, the main goal is to gain profit from the difference between the price movement. But there are several things which distinguish the two. Many people assume that forex is more 'sexy'. Let's see the comparison.
Comparison
Capitalization
No one is bigger than the forex market, in any market and any kind. Which remains the largest Forex. So we can say the forex market is very liquid. For comparison, if we look at the JSE stock market trading transaction is about 4-7 Trillion / Day. 're My world forex market is 3.5 Trillion Dollars (Remember in Dollars), which means 1000 x fold greater. You can try to calculate yourself how many zeros it:)
24 Hour Market and non-stop.
Forex market is 24-hours without limit. Broker open from Sunday at 14:00 ET until Friday at 16:00 ET with customer service available 24 / 7. With the ability to serve the U.S. market trade, Asian, and European markets, you can customize your own trading schedule. Compare this with the example of the local stock exchange (JSE), open only during weekdays (Monday till Friday) at 09:30 hours until 16:00. For those of you who work formally (office), surely this would clash with your schedule.
Commission-free
Most forex brokers do not impose additional costs (commissions or transaction costs). Brokers have taken services from the spread between the selling / buying. As for the shares (JSE) you must pay a fee of 0.15% s / d 0.3% of the selling / buying.
The speed of transaction / Order
You do not need to queue for as soon as possible on transactions / orders. Unlike stocks where you have to wait in line for your order to the realisasika. In the forex is not necessary, very large market which allows the number of buyers and sellers are not unlimited.
However keep in mind that the broker can serve your order as soon as possible with normal market note, a condition in which price movements are extreme (volatile), the broker may delay your order in a moment.
The potential advantage of two directions
Unlike with stocks or equity, in forex you can benefit both directions, both when the market goes up, down, or where prices / market will move. In the short term sell existing shares (aimed at a profit when the stock price falls), Yes indeed similar, but you can not do it on all stocks, only on certain stocks.
Complexity
There are about 4,500 stocks listed on the New York Stock Exchange. Another 3500 are listed on NASDAQ. About which stocks would you perdagankan / select? Have enough time to stay abreast on top of so many companies / stock?
In forex trading, there are dozens of currencies traded, but most of the trading market is on the 4 major pairs (USD, EURO, GBP, YEN). Is not four pairs much easier to control than thousands of stock?
Bandar free
You'll often with the word 'fried' in stocks, especially in the local stock market / JSE. Well, why a stock can be fried? Because there is a person / group of persons / financial institutions, with the fund market is relatively strong, constantly buying a stock. This makes as if a stock is rising, and many individual traders who are affected to the bandwagon to buy the shares. At the time the price had risen in accordance with the wishes of airports, airports as soon as possible to sell these shares (airports profit).
How about forex? Quite simply, kira2 how much capital needed to drive the market worth 3.5 Trillion Dollars, The point of money who is there that much.
Perhaps only in China because, according to information which could have four Trilyuan dollar reserves. But what would he risk to risk all that money just for 1 day of trading. :)
Rumors
In stock a rumor or gossip .. kecil2 an, will be able to move the price. Especially if the rumors are sometimes packaged in the form of distinguished professionals, such as stocks and guide TA performed on TV, radio, etc. .. Sometimes this can move the stock price. However, in the forex can be said is impossible. Is it possible to spread the rumor reached the ears of all traders in the world? You answered yourself:)
Will define
In forex trading, we are bound by a global / international financial markets around the world. When we play the local stock, then you should look is the Indonesian economy. And the local stock price movements (CSPI), will never be influential in the forex trade (such as the price of pair EUR / USD). But global conditions and sentiment is happening in the forex market, sometimes can affect up to local stocks or shares of certain countries. The reason is that today such as EUR / USD goes up (market / value of U.S. fall), it can be seen that the U.S. economy is down. Usually when the U.S. economy down U.S. stocks are also on the down, the next may be impacting the JSX.
