There are two types of trading that are often known in the investment world, namely stock trading and forex trading. Although similar, both have differences. Let's discuss the differences in stock trading and forex trading.forex trading
Stock Trading and Forex Trading
Stocks and forex are two of the many investment products that can be used by the community. Usually these two products can be used for trading systems.
The thing that is meant by trading here is trading shares and forex in a relatively short period of time. Hopefully the trader can benefit from the difference between the selling and buying price of the stock and forex.
Although at first glance it looks similar, but there are some differences between stock trading and forex trading. Let's discuss one by one the difference between stock trading and forex trading:
1 'Goods' traded
In stock trading, the traded product is a shareholding securities of a company. Meanwhile, in forex trading the traded product is the contract price of the currency of a country with another country's currency.
In forex trading you will see a comparison between the price of a currency and other currencies, in contrast to stock trading where the value of a company's stock is not compared to other stock products.stock market
2 Number of Products Traded
In stock trading there are more than 10,000 shares worldwide, while in forex trading there are not too many choices. As mentioned in the first point, in forex trading a currency is compared to other currencies. For example the Euro against the US Dollar or commonly called EUR / USD.
There are only 4 pairs of products commonly called major pairs. This pair is the currency that is considered the strongest and most often traded in forex trading, namely EUR / USD, USD / JPY, GBP / USD, USD / CHF.
While there are 3 other pairs called commodity pairs whose movements tend to be positively correlated with commodity prices 1. But beside the pairs of products there are also several other pairs. It's just that the choice of products remains not as much as the products traded in the stock market.
The lack of products in forex trading can be both positive and negative. The positive is that traders do not need to bother to choose too many products as in stock trading. It's just that the negative is not much choice for traders who want to experiment with various investment products.fibonnaci
3 Factors Affecting Technical Analysis
In stock trading a trader must analyze the factors that affect price changes in the market starting from the smallest. In stock trading technical analysis, the trader will analyze from the smallest data such as the company's financial statements, then the sector related to the company, then the stock trader will analyze the condition of the country.
While in forex trading a trader does not need to analyze any company data. Because the trade is directly related to the currency of a country, the data that must be analyzed is the condition of one country and another.
4 Short-Selling Facilities
Short selling is a method used in stock sales or forex where investors / traders borrow funds (on margin) to sell shares that are not owned at high prices. The hope is that investors / traders can buy back and return the stock loan to the broker when the stock goes down.
In forex trading there is a short-selling facility, while in the Indonesian stock market, short-selling facilities. Short-selling actually exists on the US stock exchange, except that the IDX (Indonesian Stock Exchange) prohibits short-selling rules because short-selling players can trigger a decline in the JCI. Why?
As mentioned before, an investor / trader can sell shares by borrowing funds to sell shares or forex that are not owned, if the stock price or forex goes down, investors / traders will benefit.moving avaredge
While if prices rise then investors / traders will lose. Because it is not uncommon for short-selling investors / traders often accused of spreading false rumors to reduce market prices. This is feared to damage the actual JCI value.
5 Market Fluctuations
Significant differences exist in market fluctuations. The forex market has higher fluctuations than the stock market. This is influenced by differences in market capitalization. The forex market has a market capitalization that is greater than the stock market. For example if you are a stock trader with a capital of IDR 2 trillion.candlestick
With a capital of IDR 2 trillion you can already buy a company in full. While in forex trading the value of Rp. 2 trillion is not too large a value if it is paid
There are two types of trading that are often known in the investment world, namely stock trading and forex trading. Although similar, both have differences. Let's discuss the differences in stock trading and forex trading.forex trading
Stock Trading and Forex Trading
Stocks and forex are two of the many investment products that can be used by the community. Usually these two products can be used for trading systems.
The thing that is meant by trading here is trading shares and forex in a relatively short period of time. Hopefully the trader can benefit from the difference between the selling and buying price of the stock and forex.
Although at first glance it looks similar, but there are some differences between stock trading and forex trading. Let's discuss one by one the difference between stock trading and forex trading:
1 'Goods' traded
In stock trading, the traded product is a shareholding securities of a company. Meanwhile, in forex trading the traded product is the contract price of the currency of a country with another country's currency.
In forex trading you will see a comparison between the price of a currency and other currencies, in contrast to stock trading where the value of a company's stock is not compared to other stock products.stock market
2 Number of Products Traded
In stock trading there are more than 10,000 shares worldwide, while in forex trading there are not too many choices. As mentioned in the first point, in forex trading a currency is compared to other currencies. For example the Euro against the US Dollar or commonly called EUR / USD.
There are only 4 pairs of products commonly called major pairs. This pair is the currency that is considered the strongest and most often traded in forex trading, namely EUR / USD, USD / JPY, GBP / USD, USD / CHF.
While there are 3 other pairs called commodity pairs whose movements tend to be positively correlated with commodity prices 1. But beside the pairs of products there are also several other pairs. It's just that the choice of products remains not as much as the products traded in the stock market.
The lack of products in forex trading can be both positive and negative. The positive is that traders do not need to bother to choose too many products as in stock trading. It's just that the negative is not much choice for traders who want to experiment with various investment products.fibonnaci
3 Factors Affecting Technical Analysis
In stock trading a trader must analyze the factors that affect price changes in the market starting from the smallest. In stock trading technical analysis, the trader will analyze from the smallest data such as the company's financial statements, then the sector related to the company, then the stock trader will analyze the condition of the country.
While in forex trading a trader does not need to analyze any company data. Because the trade is directly related to the currency of a country, the data that must be analyzed is the condition of one country and another.
4 Short-Selling Facilities
Short selling is a method used in stock sales or forex where investors / traders borrow funds (on margin) to sell shares that are not owned at high prices. The hope is that investors / traders can buy back and return the stock loan to the broker when the stock goes down.
In forex trading there is a short-selling facility, while in the Indonesian stock market, short-selling facilities. Short-selling actually exists on the US stock exchange, except that the IDX (Indonesian Stock Exchange) prohibits short-selling rules because short-selling players can trigger a decline in the JCI. Why?
As mentioned before, an investor / trader can sell shares by borrowing funds to sell shares or forex that are not owned, if the stock price or forex goes down, investors / traders will benefit.moving avaredge
While if prices rise then investors / traders will lose. Because it is not uncommon for short-selling investors / traders often accused of spreading false rumors to reduce market prices. This is feared to damage the actual JCI value.
5 Market Fluctuations
Significant differences exist in market fluctuations. The forex market has higher fluctuations than the stock market. This is influenced by differences in market capitalization. The forex market has a market capitalization that is greater than the stock market. For example if you are a stock trader with a capital of IDR 2 trillion.candlestick
With a capital of IDR 2 trillion you can already buy a company in full. While in forex trading the value of Rp. 2 trillion is not too large a value if it is paid
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