When learning the basics of finance, investors should learn to distinguish between foreign exchange investment and stock investment, and see the difference between the two.
Let’s take a look at the advantages of foreign exchange margin trading that the stock market cannot surpass. These are the basic foreign exchange knowledge that investors need to master:
As we all know, the stock market can only be traded during certain hours of the day, usually from 9:30 am to 3 pm. Especially if the investor has work to be done, there is often a dilemma, either to quit the job or get out of the deal. Foreign exchange margin trading is available 24 hours a day, five days a week, and investors can choose to conduct foreign exchange margin trading at night during their leisure time.
There are thousands of stocks in the stock market, so stock selection must become a very difficult thing. In the foreign exchange market, currency combinations are very limited, which allows investors to concentrate on investing in these currency combinations and quickly grasp their pulse.
The trading volume of the stock market is much smaller than that of the foreign exchange market, and many non-professional investors affect the normal operation of the market, making it more difficult to predict market movements. While the foreign exchange market is the largest financial market in the world, it also includes larger players: banks, investment funds, companies and other financial institutions.
Another disadvantage of the stock market is that in a bear market, investors can’t do anything but be trapped. Most investors can make profits when the economy develops rapidly, but economic development alternates. When development is replaced by recession, investors can only hold positions.
