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Forex Versus Stocks
Stocks have been a popular investment for hundreds of years. Companies issue stocks to raise capital for expansion and new projects, and each share of the stock represents a partial ownership in the company.When the company does well and makes a profit, the value of the stocks rise. Stock owners can sell their shares for a profit or hold on to the stock for even more gain in the future. Sometimes companies will issue dividends – part of the profits that are distributed to share holders.Stocks are traded on stock exchanges. Most stocks are bought and sold through brokers who charge a commission or fee for this service. American stock exchanges include the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotation System (NASDAQ). Most stocks are only listed on one exchange, although large companies may have listings on several exchanges.Stocks were traditionally seen as long term investments. So called 'blue chip' stocks - those having proven value over many years - may form the backbone of an investment portfolio. Short term trading is a relatively new phenomenon made possible with the advent of Internet trading. Day traders attempt to take advantage of large daily fluctuations in the market by buying and selling many times in one trading period. It is relatively risky and any profits realized are reduced by broker commissions charged on each transaction.Stocks may sometimes be bought on margin, meaning that the investor borrows money to buy the stocks. Margin rates are usually around 50% - the investor can borrow as much as half the value of the stock.FOREXThe Foreign Exchange Market (FOREX) is quite different from the stock exchange. In contrast to the stock exchange, the is primarily a short term market. Most traders enter and exit deals within a 24 hour period – sometimes within a few minutes.
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Ad - ProgramAdvisor.com Aug 19 2008 9:22PM GMT
Canadian dollar rises as greenback slumps
Reuters Canada Aug 19 2008 9:22PM GMT
US dollar falls for 2nd straight day
Financial Review Aug 19 2008 9:22PM GMT
Dollar slips in profit taking
Asiaone Aug 19 2008 9:18PM GMT
US crude rises by $1.66/bbl on weak dollar
ICIS Aug 19 2008 9:16PM GMT
Oil rises over $114 as dollar falls
SABC Aug 19 2008 9:10PM GMT
Oil Rises Above $114 After Dollar Weakens Vs Euro
ABC News Aug 19 2008 9:07PM GMT
Oil rises above $114 after dollar weakens vs euro
Washington Post Aug 19 2008 9:05PM GMT
Oil Prices Settle Above $114 as Dollar Weakens
CNBC Aug 19 2008 9:04PM GMT
UPDATE 8-Copper rallies on weaker dollar, higher oil prices
Ein News Aug 19 2008 9:02PM GMT
USD Eases on Data, Oil
Forexnews.com Aug 19 2008 9:01PM GMT
The Dollar Push-me Pull-you
Action Forex Aug 19 2008 8:59PM GMT
Canadian dollar closed 0.29 of a cent ahead at 94.25 cents US
Canadian Business Magazine Aug 19 2008 8:55PM GMT
What Could Trigger a Reversal in the US Dollar?
Action Forex Aug 19 2008 8:55PM GMT
Oil rises above $114 after dollar weakens vs euro
CNBC Aug 19 2008 8:53PM GMT
Oil gains on weaker dollar
Sydney Morning Herald Aug 19 2008 8:49PM GMT
Weak dollar weighs on U.S. stocks
International Herald Tribune Aug 19 2008 8:47PM GMT
Oil rises above US$114 after U.S. dollar weak...
Canadian Business Magazine Aug 19 2008 8:46PM GMT
US dollar hits multi-month highs against most major Latin American currencies
RTTNews.com Aug 19 2008 8:46PM GMT
US dollar hits multi-month highs against most major Latin American currencies
Nasdaq Aug 19 2008 8:44PM GMT
Gold ends up on weaker US dollar
Business Spectator Aug 19 2008 8:39PM GMT
Gold higher on dollar weakness
Globe and Mail Aug 19 2008 8:38PM GMT
After a long slide, dollar on the rebound
Ein News Aug 19 2008 8:37PM GMT
Loonie edges up sharply against most majors, now worth 1.0604 versus US dollar
Nasdaq Aug 19 2008 8:37PM GMT
UPDATE 7-Gold ends up; weak dollar fuels commodities rally
Reuters UK Aug 19 2008 8:36PM GMT
Forex - Dollar recovers on dip in oil prices, weak euro zoen data
Quote.com United States Aug 19 2008 8:35PM GMT
Oil rises above $114 after dollar weakens vs euro
AP via BusinessWeek Aug 19 2008 8:33PM GMT
Dollar Falls as Stock Decline Leads to Profit-Taking
CNBC Aug 19 2008 8:33PM GMT
Latest US$ exchange rates: US$/Yen 109.76; Euro/US$1.4690
Etnet.com.hk Aug 19 2008 8:32PM GMT
Latest US$ exchange rates: US$/Yen 109.79; Euro/US$1.4692
Etnet.com.hk Aug 19 2008 8:31PM GMT
Latest US$ exchange rates: US$/Yen 109.77; Euro/US$1.4694
Etnet.com.hk Aug 19 2008 8:27PM GMT
Many trades can be made in one day without building up a large brokerage fee because trades are commission free. Brokers earn money by setting a spread – the difference between asking and selling prices.The is the largest financial market in the world. It is handles transactions worth $1.5 trillion every day. By comparison, all the American stock exchanges combined handle daily transactions worth about $100 billion. The huge volume of means that it is one of the most liquid markets in the world. There is always a buyer and seller for any type of currency because the world economy relies on the movement of goods from country to country. The stock market is less liquid because participants may choose to hold their investments or move on to other markets.The is not located in any one location. Trading markets are located world-wide and because of difference in time-zones trades can be made 24 hours a day, 5 days a week. Trading begins in Sydney, Australia on Monday morning (Sunday afternoon New York time) and continues non-stop until Friday afternoon New York time.Stock exchanges have more limited trading hours. While it is possible to trade on exchanges world-wide, each exchange is independent and operates for just 7 hours a day. There is no way to buy or sell a certain stock that is only traded on one stock exchange when that exchange is closed.Other advantages of FOREX? It is more predictable than stocks. It follows well established trends; it allows high leverage – typically 100:1 instead of 2:1 on the stock market; and it doesn't require a large investment – mini accounts as small as $250 can get you started in FOREX..
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