Forex Market vs Stock Market

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Forex market and stock market are very familiar terms for digital participants especially, the stock market. We believe most people are aware of the stock market and must have heard of stock trading in the stock exchange though they may not be aware of how the trading of stocks takes place in the stock market. But, there are also a large no. of people who are not aware of forex trading in forex market like stock trading. Forex trading is also known as currency trading which by the way is not a new concept. On the contrary, the currency trading has been in trend from thousand years back. But, now that currency market has built up in a structural way. So, it is important to know the difference between Forex Market Vs Stock Market.

Breaking down ‘Forex Market’

Forex market or currency market whatever you say. It is the market where participants can buy, sell, speculate, and exchange on currencies. It allows individuals, banks, and government to engage in currency trading to get the profit out of it. However, there is no central floor for the currency market but forex market allows the exchange of currency to get the profit out of currencies fluctuations.

Operating Hours

The thing you need to know that the forex market is not dominated by a single market exchange, but a global network of computers and brokers. If we talk about the operating hours then the market is open for 24 hours a day, five times a week.

Breaking down ‘Stock Market’

The stock market is a platform where the shares of publicly listed companies are traded (buy or sell). The stock market has two main sections: primary market & secondary market. The primary market is where the number of shares of company’s stock available to general public in an initial public offering (IPO) to raise capital.

And once the new securities or shares have been sold in the primary market, they are traded in the secondary market where the buyer and seller trade shares at whatever price they agree upon.