Differences Between Stock Trading and Forex Trading

There are two types of trading that we often know in the world of investment that is stock trading and forex trading. Although similar, both have differences. Let’s discuss the difference between stock trading and forex trading.

Trading Stocks and forex are 2 of the many investment products. The meaning of trading here is to sell stocks and forex in a relatively short period of time. With the hope that traders can benefit from the difference in selling and buying prices of stocks and forex.

Although at first glance looks similar, but there are some differences between stock trading and forex trading. Let’s discuss one by one the difference between stock trading and forex trading:

Traded Goods

In stock trading, the traded product is a company’s securities. If in forex trading, the traded product is a currency price contract. In forex trading, you will see a comparison between the price of a currency with another currency. Unlike stock trading, the value of a company’s stock is not compared to other stock products.

Number of Traded Items

In stock trading, there are over 10,000 stocks worldwide. If in forex trading there is not too much choice. For example the Euro against the US Dollar or the so-called EUR / USD. There are only 4 product pairs that are major pairs. This pair is the most powerful currency. In addition, there are 3 other couples named commodity pairs. The movement tends to positively correlate with commodity price 1. But in addition to the product pairs, there are also some other couples. It’s just that the choice of products is still not as much as the products traded in the stock market.

Factors Affecting Technical Analysis

In stock trading, the trader must analyze the factors that affect the price changes in the market starting from the smallest. In the technical analysis of stock trading, the trader will analyze starting from the smallest data. Like the company’s financial statements, then the related sectors of the company. Then the stock trader analyzes the condition of the country. While in forex trading a trader does not need to analyze any company data. Because the trade is directly related to the currency of a country. Then the data to be analyzed is the condition of one country and another country. You can read tradegbp.com for help you to the analytical strategy of them.

Trading stocks and forex trading is at first glance looks similar, in fact, there are many differences between the two types of trading. Both have advantages and disadvantages of each. But there is an equation in both tradings. You need to learn more at fxtrade777.com. In order to find an investment which is more suitable to your needs because they have different characteristics in the investment process.