Wednesday, April 18, 2012

Why Traders Mostly Chose Forex Trading Over Stock Trading?

Forex trading market and stock trading market are two independent entities having no relation with each other. Forex market trades with the currency exchange and the stock market deals with buying and selling of stocks. Most of the traders chose forex market than the stock market is for 'forex leverage'.
In a stock trading, you can trade with 2:1 leverage usually. Here you have to fill the application form and need to get it approved. Here many specific regulations will guide on who can trade with leverage. But the forex market is different there are no specific regulations and you can get more leverage than the stock market, in US you'll get 50:1 leverage and in other countries you have 200:1 leverage. In a forex market, trader get more leveraged benefits.
In a stock market we can buy or sell the stocks under the Intel stocks. The stock's profits and losses purely depends on the movements of Intel stocks but in forex market we can buy and sell currency pairs very easily, these performance purely depends on the political prospects and GDP value. The forex trading is risk free compared with stock trades.
The stock trading has more regulations and limits but the forex has no regulations. The stock trades have limited hours for trading but the forex trading has no limits, we can trade 24 hours a day, except for weekends.
Chose the right trading center for your trade. Trading in forex gives more opportunities but requires a bit of knowledge in trading.

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