Foreign exchange market is not like the stock market
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The foreign exchange market is also known as the FX market, and the forex market. Trading that occurs between two countries with different currencies is the base for the fx market and the background of the trading in this market. The forex market is over thirty years old , established in the early 1970's. The forex market is one that is not based totally on any one business or investing in any one business, but the trading and selling of currencies. The difference between the stock market and the forex market is the huge trading that occurs on the forex market. There are millions that are traded daily on the forex market, about two trillion greenbacks is traded daily. The amount is much higher than the money traded on the daily stock market of any country. The forex market is one that involves executives, banks, monetary institutions and those similar kinds of institutions from other states. What is traded, acquired and sold on the forex market is something that can simply be liquidated, meaning it can be turned back to cash fast. From one currency to another, the supply of cash in the forex market is something that may occur fast for any investor from any country. The difference between the stock market and the forex market is that the forex market is trans-national, worldwide. The stock market is something that takes place only inside a country. The stock market is founded on enterprises and products that are inside a country, and the forex market takes that a stage further to incorporate any country. The stock market has set business hours. Typically, this is going to follow the business day, and will be closed on banking holidays and weekends. The forex market is one that's open generally twenty four hours a day as the vast number of nations that are concerned in forex trading, selling and buying are located in so many different time zones. As one market is opening, another country's market is closing. This is the continual system of the way in which the forex market trading happens. The stock market in any country will be based mostly on only that country's currency, say for example the Japanese yen, and the Japanese stock market, or the US stock market and the dollar. Nevertheless in the forex market, you are concerned with many varieties of nations, and many currencies. You will find references to a selection of currencies, and this is a significant difference between the stock market and the forex market.