Sunday, February 28, 2010

Differences between Forex and Stocks

Differences between Forex and Stocks
Forex Stocks
Largest and most liquid market in the world Liquidity dependent on stock’s daily volume
24-hour trading action for 5.5 days a week Less than 7 hours of trading time per day
Can profit in both bull and bear markets Most people buy stocks instead of short-sell
Can short-sell anytime Need to obey uptick rule in order to short-sell
Minimum slippage and order errors More room for slippage and error
100:1 leverage on standard-sized accounts 2:1 leverage to the average stock investor

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