2015/12/25

Online Outsource From Stock & Forex Trading

Stock trading & forex trading is a very lucrative way to make money for those who has good idea of the market.online trading

There are number of free or paid courses available on internet that can train you for online trading. You can even read newspaper like Economic times or watch TV channels like CNBC to become more expert in the field.



Its risky to enter into this market without sufficient knowledge.

WHAT IS FOREX?

If you’re new to foreign exchange, or forex, as it is commonly known, you’re probably wondering what makes it different from stock exchanges. Forex is both similar and different to stock exchanges. Here are some of the main differences:

Unlike the stock market, where money is traded for shares in a company’s stock, Forex is all about trading one type of currency for another. In both markets, you make money by following the same principle: buying low and selling high. However, the forex market differs from the stock market in that going long (betting on a rising price) or short (betting on a falling price) is equally easy.

You may have experience as a forex trader and not even know it: anyone who has traveled to another country and exchanged their home currency for the local currency has traded forex! Of course, the global forex market operates on a much larger scale, involving importers and exporters, multinational corporations, portfolio managers, hedge funds, and speculators.

Some of these players are doing business in other countries, some are hedging one currency against another in order to prevent losses, and some are engaged in currency speculation – trying to predict and profit from favorable currency movements.
The forex market is one of the most exciting and trader-friendly markets in the world. Here are some other useful facts to know if you’d like to become a forex trader.

Stock Market and Forex Relationships: How a Stock Move Translates to Currency Trades

Stock market movements are watched by casual investors to active traders. Many times, the movements of the stock markets can give clues about potential movements in currency trading. Below is a table of general tendencies that a trader familiar with stock trading can use to guide them in forex trades.

If the stock market is said to be in a “risk on” mode with prices on the rise, then you tend to see these currencies below trade in noted general directions.

When first deciding to take up trading, a trader may face one of the biggest dilemmas – what to trade: Forex or stocks? In fact, at first sight, Foreign Exchange market has many similarities to the stock exchange market, but it is worth mentioning that Forex trading and stock trading are quite different forms of financial trading. There are a number of differences between Forex and stock trading that each novice trader should be aware of in order to be able to make the right choice.

Liquidity
Foreign Exchange market is considered to be the largest and the most liquid financial market in the world with an average daily turnover of $5 trillion. Foreign Exchange market is always moving and traders from all over the world are buying and selling currencies of various countries despite of time zone and geography. Due to high liquidity, one of the main advantages of the Forex market over the stock market are the margin requirements: in the Forex market margin requirements are low and in the stock market just on the contrary – they are rather high.

Trading instruments
When talking about the main differences between the Forex and the stock markets, one of the first things that comes to mind is the number of the trading instruments offered. The stock market offers a great variety of instruments to trade, since there are various stock exchanges in the world such as the New York Stock Exchange, the NASDAQ, the Australian Stock Exchange, etc., and there are thousands of stocks listed on each of these stock exchange markets. The Forex market, on the contrary, has very few options. Most Forex traders focus their attention and efforts on seven currency pairs (EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD, NZD/USD) and this makes Forex trading much easier, because instead of picking between thousands of stocks to find which one is the best, the only thing a Forex trader needs to do is to follow the economic and political news of these seven countries to be able to make the right analysis.

Commission
Commission is the payment that a trader pays to a brokerage company for placing an order. In the Forex market, there are no or low commissions and the brokerage companies compensate their services through the bid/ask spread. In contrast, when trading stocks, traders need to pay commissions, which varies from broker to broker.

Trading hours
In general, the Forex market operates 24 hours a day from Sunday at 5pm EST to Friday at 5pm EST. Stock exchange markets, on the contrary, are open only at certain hours of the day, which surely may not be convenient for your time zone. Being able to trade in the Forex market 24 hours a day and 5 days a week is a real advantage since traders can easily access the market anytime during the day and what the most important is get more trading opportunities.

The above-presented comparison can be a helpful guide for those, who want to enter the boundless world of finance and wonder which market is the best. It is highly advisable to examine each market carefully and learn all its nuances in order to be able to avoid undesirable losses.