HTML clipboard The Forex market is totally different from the stock market. Unlike the stock market, the FOREX market is primarily a short term market. Most traders move in and out of transactions within a 24-hour period - sometimes within a few minutes. Many Forex trades can be executed in one day without earn brokerage because in most cases, do not charge commissions for Forex trading. Brokers earn their profits through the "spread" or margin - the difference between the bid price and bid price.

Forex is the largest financial market in the world. It handles transactions worth over $ 1.5 trillion daily. In comparison, the U.S. Stock Exchange handles daily transactions equivalent to about $ 100 billion.

The sheer volume of Forex means it is one of the most liquid markets in the world. There will always be a buyer and a seller for any currency at that the global economy depends on movement of goods across countries. The stock market is less liquid because its Participants may choose to maintain possession of their investments or they can simply continue to invest in other markets.

The Forex market is not located in a specific place. Markets are operating around the world and following the different time zones, trading in Forex can run 24 hours a day, 5 days a week. The operations begin in Sydney, Australia, on Monday morning (Sunday afternoon in New York) and continues non-stop until Friday afternoon at New York.

The stock exchange has a more limited trading hours. While it is possible to operate globally, each Stock market is independent and operates for 7 hours a day. You can not purchase or sale of certain values in particular which is operated only in one Exchange after the stock market is closed.

"Other advantages of Forex?It is more likely than values. Follow well-established trends, enables high leverage - typically 100:1 instead of 2:1 on the stock market, and does not require a large capital - mini accounts, as little as about $ 250, can enable its inception in forex.