Forex vs. Stocks: Key Differences Explained
Forex (Foreign Exchange)
focuses on trading currency pairs like USD/EUR.
Stocks
involve buying shares of companies like Apple or Tesla.
Forex operates 24/5, while stock markets have fixed trading hours.
Forex is influenced by global economic factors, while stocks depend on company performance.
The forex market is the largest, with daily trades exceeding $6 trillion.
Stock trading offers ownership in companies, whereas forex involves currency speculation.
Forex trading typically has higher leverage compared to stocks, increasing risk and reward.
Stock markets are centralized exchanges, but forex is a decentralized over-the-counter market.
Investors choose forex for liquidity and stocks for long-term growth potential.
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