SHARETIPSINFO >> Articles Directory >> Foreign Exchange Market – Learn How It Is Different from Stock market.
Foreign Exchange Market is done all over the world by all the interested people without many rules to involve the survival of the fittest as well. On the other hand stock market is a type of investment which is done only by one particular country. This is the first most difference which you will find when you hear about this two word. Foreign Exchange Market exchange also includes currency as it is practice globally and it includes the exchange of different currency of the different people and were trading so as to earn profit exchange. Stock market is operated by buying and selling the shares of the different company. While stock market includes banks, institution and individual Foreign Exchange market also include bank, institution and individual and even government as well. Remember that whenever you wish to go for investing your money in the stock market, it is always best to go for stock market consultant. So, let us have a look at Foreign exchange market – Learn how it is different from stock market.
Differences between Foreign Exchange market and stock market
Foreign Exchange market was introduced in the later part in 1970 with a proper framework. From that time and during that time the value of each of the currency was based on the value of the gold by the different country. Not only banks or individuals or a institution even government also started trading with each other. While stock market was started in the year 1874, and were of two types Bombay stock exchange called the Sensex and National Stock exchange called the nifty. Stock market trading cannot be done the whole year as there is certain specific time like Monday to Friday and that also from 09:55 A.M. to 3:30 P.M and Sunday the market is close. If the investor wants to do the investment and is not satisfied with the situation within the specific time, he can extended but that also up to 7:00 P.M. and there are some guidelines to be followed and mostly this extended period is occupied by the institution, but in case of the Foreign Exchange Market trading can be done for the whole day i.e. 24 hours in a which means throughout the whole year trading can be done for 365 days.
Transaction process
In the Foreign exchange market normally an individual is not allowed to join the market but he can join any one among the bankers and if case if there is any profits the bankers will share with the investors and there may be some rules regarding this distribution also. It may be different from bankers to bankers. But in case of stock market it is more flexible for an individual to participate. The trading amount in a stock market cannot have a limit as it can be a thousand or it can be more than a million or billion. But the amount of trading in a Foreign Exchange market is specified to some extend like the amount involves may be more or 9 times more. And the transaction in case of Foreign Exchange Market is very fast. This is its advantages over stock market also, so that without much enthusiasm the investors can know their profit, while in case of stock market the investors sometimes finds it difficult to trace his profit. The stock market usually takes time to turn their shares value into cash while in cash of Foreign Exchange market it is always possible to take their profit in cash as transaction is mainly done in cash only. It is important to understand the concepts of NSE, BSE…etc.
On the contrary they have similarities that they both fluctuate within a certain time and both are volatile, so the market value keep on changing because of this volatile there occurs a trading in the market, some will be benefit with this market change while for some people it can be a great loss. So you have come to understand Foreign exchange market – Learn how it is different from stock market.
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