What is The Difference Between Stock Trading and Forex Trading
Let us cover some important points in the article about stock trading and forex trading. The important points to be covered in the article are as follows,
- What is the Stock Market
- What is Forex Market
- How to get a trading account in 5 minutes
- How to start online trading in Stock Market
- How to start online trading in Forex Market
- What is Option Trading
- Stock Market vs Forex Market, Which is best to trade
1. What is a Stock Market
A stock market is a place where companies issue shares and the shares are traded in the market. In the beginning, the company allows the public to buy shares for a certain price in the name of an Initial public offering. This is called primary market sales.
In the secondary market, The shares which are sold in the primary market are traded. In the secondary market, One investor can only buy the shares from another investor. The price of the depends on buyers and sellers.
In the stock market, You can trade equity shares, options, futures, and commodities. There is no limit for minimum and maximum trading. You can buy and sell with whatever the amount you have with you.
2. What is Forex Market
Forex Market is also known as the Foreign Market, Which is used to trade global currencies such as Dollars and Euros. Forex Market is one of the biggest global markets with 5.3 Trillion trading volume. Trading of these currencies is called as Forex Trading. Forex Markets trades are done by huge financial organizations as well as hundred dollar traders.
The formalities required to open an account can be done online. Now you can start online forex trading by signing up through the internet. It’s easy to open an account and start trading.
3.How to get a trading account within 5 minutes
Follow the steps to complete the process.
- Go to this link: Open Trading Account in 5 Minutes
- Give your name and mobile number.
- Enter the OTP that you got on your mobile.
- Fill the required details such as PAN number, Aadhar Card number.
That’s it, the company will review your account and forwards the account number and password within the next 30 minutes.
4. How to start trading in Stock Market
Once you complete the 3rd step, You will get a login ID and password. You can use them to login into your trading account (Demat Account). Once you complete the login process. You can start searching for companies you want to buy in the stock market. Follow the steps.
- Choose which company shares you want to buy.
- Google them and know their shortcodes (Example: Infosys will be listed as Infy).
- Enter the stock name or shortcode in the search box of your trading account.
- Add the stock to your trading or watchlist.
- Now you can buy the stock from your watchlist or trading list.
5. How to start trading in Forex Market
Just like the Stock Market account, You need to login to your Forex Market account. Once you log in, You need to select which type of currency pair you want to trade. The brokerage firm will also provide certain leverage. Follow the steps.
- Select the currency you want to trade.
- Select you trade volume.
- Decide to go on long or short trades.
- Calculate the leverage and available currency.
- Now you start trading.
6. What is Option Trading
There are two ways of trading in options. One is call option and the other one is put option. Call options are bought if the trader thinks the market will be in bull direction. Put options are bought if the trader thinks the market will move in the bear direction.
Options are more volatile and much harder to understand. Options shrink according to the time. Options can be bought and they can be sold. Selling the options without buying them is called option writing. Option writing requires a huge capital comparing to option buying.
Option costs are different according to its positions. Options range according to stock and time. Options have a certain end period of time.
7. Stock Market vs Forex Market, Which is best to trade
Different people have different opinions on the market. According to me, it is best to choose Stock Market instead of the forex market. Forex Market is influenced by different works in the country. Moment of currencies is calculated by large trades and other speculations.
In the stock market, we have multiple companies and commodities. According to me, It is easy for us to calculate companies than to calculate currencies. I prefer the stock market over Forex Market. It’s up to you to decide which suits best for you.