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What is Forex Market Vs What is Stock Market?



Forex Market popularly called as Currency Market or Fx Market or Foreign Exchange Market. In Fx Market, basically trading of Currencies will happen.i,e, nothing but buying and selling of Currency Pairs. For eg: EURUSD , USDJPY, USDCHF.

The Fx Market has the most buyers and sellers than any other market in the world and is traded in all major financial institutes around the world, 24 hours a day 5 days a week.


Buying & Selling Currencies:

Currencies in the Forex market are priced and displayed in pairs and when a trade takes place it results in simultaneous buying of one currency and selling of the other currency. The objective is to buy a currency that is increasing in value relative to the one that is being sold. When buying or selling a currency pair, you then have to sell the currency (close the position) to lock in the profits accumulated.


FOREX MARKET LOCATIONS

● The Forex market runs 24 hours a day, 5 days a week

● At 3:30 Am Monday IST trading starts as the Forex markets open Sydney & Singapore (IST)

● At 4:00 - 4:30AM the Tokyo market opens (IST)

● At 02:00 PM the London market opens (IST)

● At 06:00 PM the New York Market opens (IST)

● As a Trader this allows you to enter and exit the market and almost any given time as the Forex market is open 24 hours a day expanding through all the time zones and market hours.

● Forex Trading takes place all across the world and is not located in any central location.

● Various deals (buying and selling of currencies) is done between a different banks, traders, managed investment/hedge funds and individual retail traders like yourself.

****IST Means Indian Standard Time


HOW BIG IS THE FOREX MARKET .


● It is by far the largest traded and most liquid market in the world

● The Forex market trades a huge average of over $5 trillion a day!


CURRENCY PAIRS

● A variety of currency pairs can be traded, usually up to 28 pairs depending on your broker ● Major currency pairs:

Pairs that include the USD

EURUSD

GBPUSD

AUDUSD

USDJPY

USDCHF


● Cross pairs and exotic pairs:

Pairs that do not include the USD

EURGBP

EURJPY

GBPJPY

EURCHF


MAJOR MARKET PLAYERS

● Banks

● Governments

● Companies

● Reserve banks

● Large mutual funds & Hedge funds

● Individual Traders like yourself


Fx Platform For Induvidual Traders:

Below is the picture of Fx Trading Platform



Stock Markets are the place where shares of various companies are traded through exchanges.They are accounted as the most fundamental piece of the market economy as organisations are presented to capital and financial specialists. In value stage, purchasers and venders exchange protections which are either open stock or private stock that are exchanged through vendors.


There are two major stock exchanges in India. They are

1) National Stock Exchange-NSE

2) Bombay Stock Exchange-BSE


Pro Traders will trade in general exchange for the most part in NSE as the volume apparently is a lot higher than in BSE stocks.


Buying & Selling Stocks:

Equity markets function well in coordination with both the seller and the buyer. Usually, the investors offer a specific price and the sellers want another certain price. When these prices match a sale occurs. Sometimes there could be many investors offering the same price, in that case, the investor who first bid the price will get the stock. Here both buying and selling are taking place at the market value. Just like why common people take stock market for an extra source of income and companies invest in stocks to improve their revenue. Also, all companies listed in the stock market are represented as publicly traded stocks. The risk factor is when the company is not performing well, the prices fall indirectly or directly affecting the investors. The price fluctuations occur usually due to the demand balance of the share. As the demand increases so do the price for that particular share..


Indian Stock Market Timings:

9:00 Am-9:07 Am----------Pre Market Sessions

9:15 Am-3:30 Pm----------Market Sessions

3:30 Pm-4:00 Pm----------Post Market Sessions


Different Segments Traded in Indian Stock Market:

1)Equities

2)Futures & Options

3)Commodities




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