Saturday, February 6, 2010

The Forex Market Differ From The Other Assets Classes

 The main differences between Forex and Stock markets are as follows:

Basis
Forex Market
Equity Market
24 hour market
Yes
No
Volume and Liquidity
Very High
Less than Commodities and Forex
Commission
No
Yes
Exchange
No
Yes
Margin Trading
High
Low
Manipulation
Difficult
Commonplace
1.24 hours a day marketAn important difference between the market exchange rate and the stock market and currency non-stop, the future market, and provide complete freedom of entrepreneurs to choose their own time to act. On the other hand open, the stock or the stock market accounted for about 8 hours from Monday to Friday, according to the exchange.

2. The flowThe size and liquidity of the main benefits foreign exchange market, greatly contributed to its popularity among the roles. Foreign exchange market capacity is about 100 times higher than the global stock markets. Liquidity is a key role in the epidemic
Purchase in order to help these industries is very easy to retire, the market is not favorable.
3. Commission and the transaction costsTransaction costs and currency markets to close to zero. This is another reason is that foreign exchange trading is a powerful alternative to the stock market, in particular, tax evasion, tax fraud, the market, because investors. In addition, there is a great opportunity, stock brokers and improve their overall transaction costs.
4. RemittanceForeign exchange market is the interbank market and transactions carried out mainly through telephone or the Internet with the central bank on behalf of the client. Only in the foreign exchange future. Circumstances, the stock market may be to do business in
There is no inventory, even in the OTC (OTC) market.
5. MarginForeign exchange margin trading is a common standard, because the currency based on the margin (initial and maintenance margin). However, if dry, margins generally expensive, the most common. Cash is the most common form of trade in today's market. In addition, the influence of the foreign exchange market is far greater than the two stock markets. For example, to the great influence of foreign exchange brokers, 50 times and 100 times. Like the stock market, the amount involved is much smaller than 10-fold.
6. Cúbláil and interventionStock market manipulation is a very common form of trade, block addresses, which increases the risk of global stock markets. Foreign domination, but it is very difficult, because the market is bigger and more complex.
Fun stock market game makers and the performers themselves, who buy and sell part of its own funds to manipulate stock prices. Generally speaking, only in the foreign exchange market, the lack of national institutions, especially central banks, buy and sell foreign exchange to maintain a certain monetary value.

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