Thursday 8 July 2010

What are the difference between Forex and stock market

There are tons of articles about difference in Forex and Stock market out there. To summarize, I will list down few facts that I could remember:

  • Forex is 24H market
  • No commission on forex, no middleman
  • Long/Short execution upon click, with the exact price.
  • more liquidated then stock market

And there are one less common point people, there are 2 purest form of indicators in Technical Analysis: Price action and Volume. The disadvantage is we do not have a central exchange in Forex, so we do not get the volume as accurate as in stock market. We could see the volume in our charting tools is the volume from our broker only. Yet it does reflect the change of volume, but not as significant.