Asks a lot of traders, especially beginners them about the difference between the global financial markets or the so-called Forex market and the local capital markets, which are the local same stocks, the forex market is a market for the exchange of foreign currencies where they are through purchase of foreign currencies from various different countries and sale by investors in this market and are the currency trading currency against another currency, but the stock market is a market that is through the purchase of shares of certain companies that are on the table in the local stock market to the same country and thus get a return when selling these shares process when it rises in price. The side and co-principle between the forex market and the local stock market is the principle of trading and the goal of achieving profits and there is a similarity else, including, but which is that trading takes place in both markets with the help of intermediaries, this was the face of the similarities between the two markets As for the differences between the forex market the local stock market and foreign exchange market It includes currency trading while the stock market is a place where stocks are trading the company, in addition to this simple difference there there are multiple and many different points, so we'll show you the most important of these differences:

Market hours

The local stock market works for a limited time on a daily basis from 8 to 9 hours, depending on the local market dates of each country compared to the foreign exchange market remains available and effective for 24 hours a day over five days from Monday to Friday, providing flexibility to the investors that do trading at their convenience.

Central market

The forex market is linked to the state or a particular economy and for this reason it is considered market is a central but he global market and who holds influence the scope and broad at the global level while the stock market is a local market which is directly linked to the shares present in a particular country and local companies.

Central market

The forex market is linked to the state or a particular economy and for this reason it is considered market is a central but he global market and who holds influence the scope and broad at the global level while the stock market is a local market which is directly linked to the shares present in a particular country and local companies.

Commission

The customers in the local stock market are to pay a commission fee on each operation carried out by brokers on their behalf, as the mediators to impose such a commission on clients from the very beginning. In the foreign exchange market, there are no commissions or fees on deals but there are so-called Pal spread, a variable which is little and very few take him at brokerage firm purchase or sale represents a price between the purchase price and the selling price on a pair rolling out the currency difference.

Leverage

In the foreign exchange market there is the possibility for leverage in the electronic wallet through which allows you to double the capital as the Leverage enables you to invest more money than you have actually portfolio ranges leverage strength in the forex market between 1:50 to about 1: 400 For example, if you have an electronic purse activated worth $ 1,000 and it has provided the company intermediate leverage the value of 1: 100 shall be to have the possibility of trading the equivalent of the amount of $ 100,000, which provides you with the opportunity to achieve great gains through limited capital while the local stock market are giving you a loan submitted by the broker to the investor does not provide this market you access to leverage capital is not changed when trading remains the same and do not double.

Size of the contract

In the local stock markets possibility available to stores that sell or buy a specific amount of stock at a price and only a certain time, who wants while in the foreign exchange market there is the possibility that the investor buys or sells pilgrimage is specified on the price of a particular market.

Ease of analysis

The forex market has a more than 50 currency pairs, including the four major currencies pairs, which can be rolling ease of analysis and follow-up by technical analysis or news analysis while the local stock market contains hundreds and even thousands of companies in each country, which make it difficult for traders in this market follow-up and find all the differences between them and choose the best.

Buying and selling in market trends

Can a trader in the forex market to benefit from the change in the exchange rate gains and profits both changed the direction of high or low, as it is possible to increase the exchange rate of one currency in conjunction with the decline of other coin, which gives a great and guaranteed the possibility of opportunities for many profit and this is what distinguishes market Forex that he does not work in one direction only, unlike the local stock market, which can not take advantage of it, but in the case of high shares of the company either in the case of low stocks and the loss list is subject to change, but change as the arrow move beyond.

Trading information

The foreign exchange market is one of the Alausaq the most equitable global financial level as transparent and accessible market for all human beings, whether Kmtdaulin or non-traders so that all people have the possibility to obtain the required information regarding the market and trading, which makes it easier to take vital decisions at their convenience while in markets local stock the professional traders and analysts in which the entrance to the internal corporate information, which gives them the advantage and importance for the rest of the traffickers.

the stability and the volatility of the market

The forex market is one of the most markets stable in terms of influence it and manipulate it by brokerage firms can not be a company or an economic entity that will disrupt the stability of global market up daily trading volume of more than 4 trillion US dollars, so the demand for foreign currencies It is not possible that at least one day which enhances the presence of buyers of the currency and dramatically reduces the access of volatility in this market while the local stock market is based in which demand my game the arrow depends feelings of psychological traders, which could result in more or less to the coup in which ZTE so that it is possible for certain companies to sell shares or recommendations that the large group of traffickers to carry out intensive purchase agreement for a particular stock until its price rises or vice versa, leading to destabilization of the domestic market stability.

These points were some of the most important differences between the foreign exchange market (Forex) and the local stock market which gives preference, causes and realistic and true directly for the investor to choose the foreign exchange market and its entry in comfort and contentment.

The STRATTON FX Company, a global brokerage firm leading and well-known in the foreign exchange market can provide you, dear reader, all you need of information and services training directly and technical support and analysis about safe handling and about trading intact in the Forex market to harvest interesting experience enjoyable and durable.