5 Difference Between Stocks and Forex – Stocks and forex are forms of trading in the financial sector. The two are currently being discussed on various social media platforms. Especially by young people in Indonesia. But actually what is the difference between stocks and shares? forex?
Difference Between Stocks and Forex
1. Stocks vs Forex Goals
Usually stocks are aimed at people who want to invest. This is due to the continuously rising fluctuation of the framework. Therefore, stocks are not only used for trading, but also for long-term investment.
In contrast to forex, the price of currency values in the long term tends to fluctuate in a horizontal framework. Therefore Forex is more aimed at trading (trading). Not for long term investment.
2. Trading Hours
Time is also a stark difference between stocks and forex.
Where Forex has no downtime. In other words, the trade operates 24 hours a day. This is because the time is different from each country. This certainly makes it easier for traders who want to trade at any time.
In contrast, the common stock market operates from morning to evening only. An example is the Indonesia Stock Exchange (IDX) whose trading hours are only from 10.00 am to 17.00 pm.
Stocks have a fixed leverage, in other words, if we have 50 million in cash, then we will only be able to buy 50 million shares. Where the Company cannot provide debt to investors. If there is, it’s only certain investors.
Another thing with forex. If we have 50 dollars, then we can trade as much as 100 dollars. The broker will give you 50 dollars in debt. And if you get a profit, the profit will be many times the capital we have.
4. Trade Items
Stocks have a fairly wide range of trading items, considering that there are many companies whose ownership forms are channeled to shareholders. In Indonesia alone, the Stock Exchange has 500 stock items that are traded. Meanwhile, other developed countries such as London and America have approximately thousands of stock items that are traded.
While the majority of forex traders focus more on trading items on foreign currencies.
5. Transaction Cycle
Forex has a more profitable transaction cycle, where we can start by buying, and some time later we can sell. But we can also start by selling, then after some time we can buy back.
While stocks only have a one-way cycle, where we can only buy stocks, and can’t sell them right away. Or can only resell shares at certain times.
Those were some of the basic differences between stocks and forex. Based on the explanation above, forex provides convenience for beginners who want to trade. That’s why we provide a link https://play.google.com/store/apps/details?id=com.instafxbatam which you can visit to help you download the INSTAFX Batam application which will give you the convenience of doing forex trading.