Forex Trading Vs Stocks Trading

[Wiliams123]

In Stock trading, the trader has to start his trade with 2:1 leverage. The trader fills an application which is approved and follows the basic rules and regulations related to trade and leverage. On the other hand, Forex trading is quite different. A trader has to get Forex trading account to start his trade with leverage. In America, the trader usually has a leverage of 50:1, however a lot of countries provide a chance to get as maximum as 200:1 leverage (And sometimes, even more).

In stock trading, companies shares are used for trading. These shares have different values, starting from a few dollars to thousands of dollars. There is a limited stock amount and the traders have to keep an eye on the ability of the company to earn profits. Whereas, trading currency is totally different in concept. The value of a currency fluctuates on frequent basis. As a result, a large amount of different currencies is available for selling and purchasing. In Forex trading, currencies are offered in the form of pairs. Accordingly the trader has to take in account the economic value of a country as well as the financial condition of the country which he is trading against.

To know more or read more: http://alpari.com/