Feb
27
Stock trading ruled the roost till forex trading arrived. Stock trading is practiced over a centralized exchange. Forex trading is performed over both centralized and decentralized exchanges. Both have high volumes but forex trading has today developed into a 300 trillion dollar daily industry.
Stocks plummet or rise a higher percentage of their holding in comparison to currencies. Currencies rarely pass the 1 percent bar whereas stocks can rise or fall as much as 20 percent even naturally without breaking the individual circuit. This is why forex brokers give large leverage spread of as much as 500:1 whereas stocks have margin money of hardly 15:1. Forex traders rely far more heavily on forex robots than stock traders. These are automated programs that place pips without human interference.
Stock trading can be accomplished for a single stock; for instance, Wal-Mart. Forex trading is done for a currency pair; for instance, EUR/USD, you cannot enter a forex trade without a currency pair.
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