Stock Market or share market is much popular trading alternative than Forex trading.
Forex trading is riskier than stock market in long run.
However in individual transactions, a derivative transaction in stock market can generate more losses.
Before comparing stock markets with Forex market, lets us understand both markets.
In stock market shares of listed companies are traded.
An investor can either trade in shares or invest in share.
Biggest difference between stock market and Forex market is that in stock market you can invest in shares for a very long period.
In stock market you can:
You can hold a share for long time. You can buy shares and keep them for very long time.
A share is a right in ownership of a company, by buying shares you are actually owning a part of ownership in company.
In Forex market you can trade in different currency pairs.
Tenure of a transaction will be for a very limited time. You cannot hold your contracts for a long time.
People also use Forex markets to hedge their foreign receivables and payable.
Main difference between both is risk. Stock market is actually more riskier and quantum of losses can be multiple times of Forex losses.
List of difference between Share market and Forex market
Stock market and forex markets also have similarities.
Here are common features of both markets.
Whether you trade in forex or stocks, both require certain level of caution and risk appetite. If you are an active trader, you can share your tips and experience with us.