The FX market is also known as the international foreign exchange market. Dealing can take place between any two countries with unique monetary systems is the foundation for the fx market and the background of the trading in this marketplace. The FX market is over 30 years old, established in the 1970′s where you are not speculating or dealing in business concerns instead it is based on the buying and selling of currencies.
The main difference between the fx market and the stock market that difference is the amount of trading that goes on here an amazing two trillion dollars or more can be traded each day A much higher amount than the money that is traded on the daily stock market of any country. The forex market is one that involves multiple financial institutions within a country and another countries counterparts to those institutions.
The items that are bought and sold on the fx market are easily liquidated this means that they can be turned into cash quickly if it is not already cash From one countries currency to another the availability of funds is readily available to any investor worldwide
The biggest difference the foreign exchange market and the stock market the fx market is global. The stock market is something that takes place only within a country and involves the products and businesses of that country the fx market goes further to involves any country.
There are set business hours for the stock market which typically follow the traditional business day this means that it is closed on holidays and weekends The forex market however, is one that is open generally twenty four hours a day due to the variety of countries that take part in trading selling and buying in a variety of time zones. Markets open in one country another countries market is closing so this is a nonstop method of how the fx market occurs.
A stock market in a country is based on that country’s currency say for example the Japanese yen, and the Japanese stock market, or the United States stock market and the dollar. However, in the forex market, because you are involved with different countries and multiple currencies. You will find references to a variety of currencies, and this is a big difference between the stock market and the fx market.