Forex and Stoch Market-Top Differences

Among the most commonly used investment instruments in the financial market are the stock exchange and forex transactions.

Forex market, especially in Turkey in recent years has become widespread. Ranking the differences between the forex and stock market, allows us to better understand and compare them.

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Now let's take a look at the most prominent features of these 2 markets.

• Trading Hours; Forex traded on the weekdays 24 hours a day, and the stock market will be trading on certain sessions. May be trading hours are 09:15 - 17:40. Due to the length of the transaction, the forex market is more advantageous. Besides, the weekend (Saturday-Sunday) is closed in two markets.
• Leverage; Trading on the stock market with as much as you accumulate, on the forex with up to 1000 times the amount you deposit.(For Turkey, max.1: 100 leverage is used in certain parities.) With a little investment invested in the account with the effect of the leverage, large gains can be achieved. But the risk factor is higher in the forex market as it may be in the same position.
• Bi-directional processing; When we do the buy transaction, we get profit from the upside, considering the price rise in fx. If we think that prices will fall, we will open the sales transaction and we get it when prices fall. We will profit from both buying and selling.The stock market is won only by rising prices. Two-way transaction opportunity fx market is made more advantageous than stock market investment.
• Liquidity; The ability to turn investment vehicles into the fastest way in the finance sector is just as important as making profit from them. You can turn off your deals in the FX market for minutes or even seconds. If you want to receive cash, you can still do it within minutes of the same day.In today's market where the transaction is closed (shares are sold), youraccount will have the date the money goes through the next day. It can be a disadvantage for some investors.
• Volume; Forex is a very large market that trades around the world, with a trading volume of about $ 5.5 trillion per day. The stock market has a smaller transaction volume on the spot. It is around TL 4 billion in the Istanbul Stock Exchange (BİST). Forex has a very large volume and does not allow manipulation and speculation. Manipulation and speculative transactions are possible on the stock market.
• Spread; In the stock market, transactions are commissioned separately. The rate of being able to vary on the basis of the institution is around 0.2%. There is no trading commission on Forex market.Despite that only the difference between buying and selling price is paid.The difference between Buying and Selling price in Forex is called spread. Spread is varies by product.When you open a transaction of 100.000 EUR in EURUSD parity, the transaction cost is about 10 euro. Due to low spread more advantage of opening transaction in forex than exchange office, banks and stock markets.

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