Sunday, 14 October 2012

Which one is better Stock trading or Forex trading



For a long time stocks have been a popular investment. Investors invest their amount in stock and gain profits. Companies issue stocks to raise capital for expansion and new projects. Each share of the stock represents a partial ownership in the company. When company makes profit the value of the stock rise. Stock owners can sell their shares for a profit, or hold on to the stock for even more gain in the future. There are a lot of aspects to consider if you're planning on investing in any one of the investment markets. There are commodities, currencies, futures, and stocks and each one has there upsides and downsides. Firstly let us know that what is stock and forex market???

Stock Market         

Stock market is a place where the share of companies are bought and sold or we can say that Stock market is a virtual exchange of securities like as share and debenture of companies. Stock market is a word that cannot be readily in a sentence. To well understand market you should have a lot of experience. If you want to earn money from this market then don’t invest your money without knowledge taking Stock Tips is helpful for you to earn money.

Forex Market

Forex market is also known as Currency market, Foreign exchange and FX market. Forex market is the world largest financial market. Forex is the international market for the free trade of currencies. Traders place orders to buy one currency with another currency. For example, a trader may want to buy Euros with US dollars, and will use the forex market to do this. There are four major currency pairs that are traded most often in the foreign exchange market. These include the EUR/USD, USD/JPY, GBP/USD, and USD/CHF. In forex market It is fact that you don’t earn money without taking proper Forex tips.
It is very difficult to say that which one is better stock or forex because in some prospect Forex trading is better and in some cases Stock trading is better. There are some point which can explain that which one is better.
·         In Stock we can’t predict about the future position. This is very difficult because for exact prediction you have a better knowledge and experience sometimes stock tips provider is also fail to guessing the future position but if we talk about forex trading we can predict the position of the currencies.
·         Forex trading offers a much higher level of leverage than stock options trading, making it more risky that stock options trading in terms of leverage risk. Forex allows you to trade from 50:1 up to 400:1 on your initial margin deposit but Stock market allows up to 50% of your available equity.
·         In forex we can trade 24 hour , 5 days in a week. But stock market can open from 9:30a.m. to 4:00p.m.
·         One thing which is most important in trading is risk level. In forex trading risk level is not more than stock trading. We can easily invest in forex and earn better profit.
·         In forex trading everything is online there is no dabba system. This is helpful to make much better economy of any country.
·         In the stock market there are hundred and thousand kinds of stocks, then choosing stock will be a very difficult matter. But in the Forex market, the currency combination is extremely limited

Reference:-
Author says” TriFid Research is a privately held company in Indian financial markets operations in Indore. TriFid research is an Investment Advisory Company that produces and delivers tips and recommendations for Stock Tips, Intraday Tips, and Commodity Tips.