Foreign Exchange Market vs. Stock Market: Key Differences
Foreign Exchange Market vs. Stock Market: Key Differences The foreign exchange market (also known as the forex market or FX market) is distinct from the stock market in many ways. While both markets play crucial roles in the global economy, they differ in terms of trading volume, operating hours, liquidity, and the types of assets traded. Here’s a deeper look at the key differences between the two. What is the Foreign Exchange Market? The foreign exchange market is where currencies from different countries are bought, sold, and exchanged. Established in the early 1970s, the forex market has grown into one of the largest financial markets in the world. It operates 24 hours a day, allowing businesses, governments, banks, and investors to trade currencies across time zones. ...