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Forex vs. Stocks
by cewhite
http://www.yourforexconnection.com
First of all, what is Forex? It is a short version of
FOReign EXchange. It is also called FX and 4X, but
regardless of the name you use, it is the largest
financial market in the world. From 1997 to the end of
2000, daily Forex trading has skyrocketed from $5 billion
to over $1.5 trillion..
Let's look at some reasons why Forex trading is rapidly
gaining popularity over other markets.
Trading hours: The Forex market is traded 24 hours per
day from about 7pm EST on Sunday until about 3pm EST on
Friday. The stock market is only traded Monday thru
Friday with limited hours.
Liquidity: Forex markets trade over $1.5 trillion each
day while the stock market only around $200 billion. There
are only 7 major currencies traded on the Forex while
there are more than 40,000 stocks from which to choose.
Commissions: No commissions are charged on the Forex while
the stock markets charge high commissions and transaction
fees.
Leverage: Forex Market offers great leverage power.
Brokers usually offer from 100:1 to 400:1 leverage. This
means a trader using 100:1 leverage you control $100,000
with only $1,000 margin. Stock market investors pay full
price for stock when purchased unless they have a margin
account and the leverage with margin is usually only
2:1.
Low Minimum Investment: The minimum initial investment to
open a Forex trading account is as low as $300. Most
stock brokers require several thousand dollars as a
minimum to open an account.
This is the perfect market. Foreign Exchange trading has
long been recognized as a superior investment opportunity
by major banks, multinational corporations and other
institutions. Now the internet has propelled Forex
trading among private individuals tremendously. Trade from
home, the office, or virtually anywhere in the world.
Trade virtually anytime day or night. Work part time or
full time.
It is obvious that the Forex Market offers a substantial
opportunity to those willing to invest energy, focus, and
a little money.
It is difficult for a new Forex trader to become
successful in the Forex market without understanding the
basics and how it works. This knowledge can be obtained
in a free Forex training program.
Visit us at http://www.yourforexconnection.com
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