Why Currency Trading Beats Stock Trading in 2021

1. Why Currency Trading Beats Stock Trading in 2021? Aswehaveplentyof optionsaroundusforlong-terminvestment orshort-term trading,it canbeoverwhelmingformany ofus.Both currency, akaForex marketandthestockmarket,arethe most popularmarketsintheworld for trading. TheForexmarket isthelargesttradingmarket witha dailyexchange ofmorethan$6 trillion. And morethan$1trillionistradeddailyinthestock market.Youmaywonderwhichoneismoreprofitable?WhyCurrency Trading Beats StockTrading? Some tradersthink that stocktradingis more profitablebased on their experienceandaccessibilityof the markets. Ontheotherside, currency trading isalsogainingmainstream attention, andforextradersthinkit ismore

2. profitable than any other market in the world because of high volatility and trade volume. Thedebate maygo longerontheefficacy andprofitabilityofbothmarketsas stockandforexmarketsarethemost popularonesandoffer agreatvarietyof tradinginstruments. Whatisforextrading? Forexorforeignexchangeinvolvesexchanging currenciesnot onlyfortrading purposesbut alsofortravellingabroad,cross-bordertransportation,and several other reasons. For example, there are popular currency pairs such as EUR/USD, GBP/USD, JPY/AUDandmore. Thesecurrencypairsaretraded acrosstheworldwiththecombinedexchange rate.BenefitsofForex Trading Forextradingisoneof the most basicformsof trading inwhichyou do not needa highinitial investment.Forexmarketisadecentralisedmarketplace thatisopen 24hours aday.Themarketisthenetworkof millions of traders around the globe.It isahighlyvolatile marketwhereyou cantradeone currency against another. Forex traders use an over-the-counter (OTC) approachfortradingcurrencies. Severalfactorsaffectthepriceofcurrencypairs,includingpoliticalshifts, diplomaticrelations,theoverallstateoftheeconomy,etc. What is stock trading? Stocktradingistheprocessof tradingsharesofpubliclistedcompaniesona stockexchange. A stockyou owndeterminesthe percentageof your

3. ownershipinthat particular company. Unlikeaforeignexchange, thestock exchange isthephysicalmarket wherestocksaretraded. Therearevariouspopularstockexchangesworldwide,includingNASDAQ, theShanghaistockexchange,theLondonstockexchange,NSE India,etc. The priceofstocksdependsonmultiplefactorscoveringeconomic performance,marketsentiment, changeinleader’sposition,etc. WhyCurrencyTradingBeats StockTrading:Key differences Therearevarious keydifferencesbetweenforexandstocktrading intermsof trading hours, liquidity, leverage, volatility and trade volume. These differenceswill let youunderstandwhy currencytradingbeatsstocktrading. Both marketscanbelucrative andinvolverisks.Butitdependson you how well you can balanceout boththesecomponentsinyourtradingjourney. Sothekeydifferencesare On thebasis of trading hours You canbuyorsellstocksina limited time instocktrading. Thereisalsoan after-hourstradingmarket forstocktrading, buttradesizeismuch smaller in thosehours,plusyoucannottakethebenefitofhighliquidityinthosehours. Inaddition, thereareseveral otherreasonsthat theafter-hourstradingmarket is notaspopularasregular tradinghours. You candoyour bitbytaking the best out oftheregular trading hoursinthe stockmarket becauseit’snot easytotrade24/5inthestockmarket.Stock exchangesfollow theirownrules, andstockexchangesaroundtheworldhave differenttradinghours. Limitedtradinghoursalsolimittheoptionsfor

4. investors. Inaddition,stockmarketsare closedonpublicholidaysand weekends. Ontheother hand, theforexmarketoffersyouflexibletradinghours, andthe onlinemarkethasnofixed location, and thisisonesignificantadvantagethat thereisnogapof tradinghoursin5daysaweek. Traderscantakeadvantage of this in a lot of ways. All participants trade in the forex market from different cornersof theworld.Whenthetradinghoursareflexible, it will be easierfor you to perform the technicalanalysis. You canmake betterdecisionsasyoucan time your tradesany24/5and monitor the market whenever you get a free minute. Forex currency pairs are tradedthroughtheinterbankmarket.Becauseofthe24/5virtualaccessof the forexmarket,theforexmarketisgainingmainstreamadoptionthesedays. On thebasis oftrading volume Morethan50 majorstockexchangesacrosstheworldhavea valuationof morethan$69trillion. Themarket isbig enoughforthedailyparticipation of anaverageindividual. Asthenewageofinventorsintensifiestradingwithan aggressiveapproach, themarket isexpectedtotouchmorethan$100trillion soon. StockexchangesinAsiaand NorthAmericaarethegreatestcontributionto thisindustry. Asiais contributing morethan$23trillion,andinNorth America,morethan$28trillionvalueofshareshavebeentraded. TheUnited Statesstock marketholds asignificantpartofthe value. On the other hand, the forex market has more than $6 trillion daily trading volume. Because of the large trading volume, it is very easy to participate in the forexmarket witha minimum initial investment.Youcanprefer yourprice

5. whiletradingforexcurrencypairs.Youcanexecuteyourtradesintheforex marketbecause ofthe large trading volume. Traders should be aware of the fact that they can make the best out of their investmentsinforeignexchangeasthemassiveamountofmoneyistraded daily. Moreover, whenyou get exposuretothe hightradefrequency,your chancestoenterandexitthe marketalso increases. Therefore,itwouldbe much easierfor you tomakea betterdecisionbecause ofthe high market intensityin foreign exchange. More than 80% of currencies are traded against the dollar. Thus, even an average investor can make regular income in the forex market due to the largesizeofthe market. Onthebasis ofLiquidity Hightradingvolume resultsinincreased liquidity.Theforexmarket has higher liquidityas comparedtothestockmarket. In foreignexchange,thereis a whole internationalmarket because ofwhichthehighertradevolumeis distributedequally, andeveryinvestorortradercantakeadvantageof that. Ontheother hand,inthestockmarket,everystockhasitstradevolume,and the stockmarket does not actasa whole, which meanstradevolumeis uneven. As a result, some stocks have high trade volume, and some have low,making thestockmarket vulnerabletolowerliquidity. Forexample, blue- chipstockslikeApple, Oracle,Facebook, Teslahavehighertradevolumes than thesmall and mid-cap companies. Inthestockmarket,the low tradingvolumemakesitdifficultfortradersto participate. Still,youcanhaveatleastadecent amount of tradesinthestock market.Liquiditydoesnot affect theaccessibilityof thesharesandtrading.

6. Tradershedge against thecurrencypairsinforeignexchangetoreducethe potentiallosses, andit’san addedadvantagefortraderstomake thebest out ofitbecause ofhighliquidity. TheForexmarketis themost liquidmarket intheworld, whichmakesit easier fortraderstoparticipate. Youcantradeinthe forexmarketwithmany conveniencesastherearea handfulofcurrenciesavailable. It islikelytobe more awareofthefact thatmorecurrencieslead tomoretradingasthe volume andsizearehigh in theforeign exchange. On thebasisof leverage Instocktrading, minimal leverageisoffered. Manybrokerskeeptargetingyou by fake promises of providing higher leverage of 1:150 or more, but this can notbe true. Themaximum leverageon stockcannot be offeredmorethan1:4. ButtherearegenuinebrokerslikeABinvesting. Theydo not playwithand makefalsepromises.ABinvestingprovidesthehighestpossibleleverageon stocksand iswell regulatedandknownforitsservices. 1:4 leverageforstocktradingisonlyoffered tothoseshort-term traderswho closetheirpositionbeforetheend of thetradingdayandmaintainsthe minimum tradingbalanceof $25,000. Butthisfigureisnot fixedforevery stockexchangeandchanges accordingtothemarketconditions. Inaddition, marketing trendsdriveyoutotakethe benefitof theleveragetogainhigher returns. Leverageforforextradingdepends on thebrokeragefirm,themaximum leverage limit for forex trading is typically up to 1:500. You can access leverageup to1:500withABinvestingonpopular currencypairs.Forthat, you need toopen a proaccountwiththebroker.Theaddedadvantage in forex

7. tradingisthatthere are noqualificationrequirementsforaccessingleverage like thestockmarket. Leverage is one of those components of trading which are highly lucrative for traders. The tool has the potential to multiply your returns more than even ten times. But one also should be aware of the risks associated with it. Higher the potential returns,the higher therisks. ContinueReading…………………