Forex Vs. Stocks:
Forex | Stocks |
24 hour market | Open only a few hours a day |
Most liquid market in the world | Limited liquidy especially in the smaller capitilzation stocks |
High leverage | 50% leverage at most |
Slippage is usually very limited | There is usually slippage on every order |
No commissions | Commissions on every trade |
Can go long or short easily | Harder to go short with uptick rule and possiblity of borrowed shares being called |
Can make as many trades you want | Daytrading limitations on how many trades you can do in a period of time |
Limited risk, most forex brokers will automatically close your positions when your account balance goes to zero | It is possible to have a negative balance after an adverse move in the market |
Minimum slippage and order errors | More room for slippage and error |
Can short-sell anytime | Need to obey uptick rule in order to short-sell |
Minimum slippage and order error | More room for slippage and error |
1 comment:
thats the difference between forex market and stocks
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