Ways To Make Money With Money Using Forex Against The Stock Market

The currency exchange market is also being referred as the spot market or FX spot market. It has much to do with a kind of trading or dealing where at least two currencies of different nations. That is to say that as a result of international trade or businesses that exist between many nations, they need to buy and sell, or should we say deal in currencies to balance payments and receipts with regards to their economy. This dynamic market was started in the 70′s, meaning that the currency dealing market has been around for over 3 decades now. It is interesting to know that this business model is only based on either selling or buying of currencies.

On this market there exist a very big difference with it and the stock market. One of it is the vast trading volume that happens day in day out which offers it dealers and traders multiple ways to make money with money as they speculate on market direction. Unlike the stock market, the currency market trades up to and over two trillion dollars a day, this amount is very much higher the amount traded on all markets combined. The currency market has governments, governments, agencies, banks, financial houses and hedge fund managers, including small market dealers as players.

As much as the Forex market is huge it is also very liquid, what is bought and sold on here is just currency, and its easily discounted or should we say liquidated. This means that it can be quickly turned into cash. The availability of cash in the currency market is something that can take place real fast; most investor loves currency dealings simply as a result of this. Profiting from a falling and rising markets are two major ways to make money with money in Forex trading, unlike stocks which usually have the selling restrictions

Another giant difference there is between the stock market and the currency market is the fact that the currency market is global; it presents a one market platform for it worldwide audience. Unlike the Forex market, stock market takes place within a country. We say this because when you take a very close look at the instruments traded therein, they are solely based on the businesses and products within a particular country, but the currency market at the barest minimum takes this a step further to include at least two countries. For example trading on the EUR/USD currency you will be dealing with two economies.

I have dislike for the stock market because of its limitation with regard to set business hours. Its follows the business day of 8am – 6pm, and will be closed on banking holidays and during the weekends. But this is very different in currency market; the market is open 24 hours a day because the many nations that are a major part of the market trading, buying and selling currencies are not located in the same time zone. It’s like they say “the Forex market follows the sun around the world”. As we see the market opening in one time zone of the earth, we know it is closing in another time zone in another nation. The average percentage calculated with regard to the Forex market’s weekly operation is 5.5 days a week.

All these pluses on the side of currency trading makes it the most liquid, most lucrative and most profitable business on the planet called earth, an avid trader with experience has at his disposal multiple ways to make money with money buying for a profit, selling for a profit and standing aside for a no profit, if he can control his greed and emotions.

Happy investments.

Comments are closed.