SHARE MARKET VS FOREX MARKET

-


 





 

     

    SHARE MARKET VS FOREX MARKET🔥




Meaning📌

  • Share Market is a platform where investors buy and sell shares of companies. When you buy a stock, you are becoming a part-owner of that company.
  • Forex Market (Foreign Exchange Market) is where people trade currencies. Instead of company shares, you buy and sell currency pairs like USD/INR or EUR/USD to earn profit from the difference in currency value.

Trading Item🔥

  • In the share market, the primary trading instruments are company shares, mutual funds, and ETFs. You invest in the growth of a business.
  • In the forex market, the trading item is currency pairs. You trade one currency against another, like buying USD by selling INR, based on expected price changes.

Ownership🎯

  • When you invest in the stock market, you own a part of the company. If the company performs well, your investment grows, and you may also receive dividends.
  • In the forex market, there is no ownership. You are simply trading on price movements. It is a contract-based trade, not an ownership of any asset.

Market Size & Volume🔥

  • The stock market is large and active, but the forex market is the largest financial market in the world, with over $7 trillion traded daily. Its size and liquidity are unmatched.

Risk & Volatility📌

  • The stock market carries moderate risk. Price movements are influenced by company performance, news, and economic trends.
  • The forex market is highly volatile. Currency values can change quickly due to global news, interest rate changes, and geopolitical events. Leverage in forex can also increase risk.



Comments

Post a Comment

Popular posts from this blog

ALGO TRADING MEANING

-
Image
  ALGO TRADING MEANING BLOG   ALGO TRADING MEANING Algo trading is the use of computer programs and algorithms to execute trading strategies automatically. Instead of manually buying and selling stocks, a trading algorithm makes decisions based on data, market trends, and preset conditions. Instead of a human manually placing orders, the software continuously monitors the market and executes trades instantly . DIFFERENCE BETWEEN MANUAL-ALGO TRADING Algo Trading  - No fear, greed, or hesitation —it follows strict logic.   Manual Trading  - Traders may panic , overtrade, or hold onto losses due to emotions.   Advantage-  Ensures disciplined trading without emotional mistakes. IF YOU HAVE ANY DOUBT AND QUERIES COMMENT BELOW
Read more

ALGORITHMIC TRADING

-
Image
ALGO TRADING HISTORY   Algorithmic trading, also known as algo trading , is the use of computer programs to automate trading strategies based on predefined rules. 1970s – The Birth of Electronic Trading: 1970s, stock markets relied on open outcry trading, where traders shouted orders on exchange floors. In 1971 , the NASDAQ (National Association of Securities Dealers Automated Quotations) became the first electronic stock exchange , allowing computerized trading . 1980s – Rise of Program Trading: The New York Stock Exchange (NYSE) introduced program trading , which allowed institutions to execute large orders using computers. 1990s – High-Frequency Trading (HFT) Begins As computing power improved, high-frequency trading (HFT) emerged. Traders started using technical indicators, mathematical models, and automation to execute trades in milliseconds . 1998: The U.S. SEC (Securities and Exchange Commission) approved electronic communication networks (ECNs) , allowi...
Read more

The Father of Algo Trading

-
Image
  The Father of Algo Trading The Pioneer of Algorithmic Trading The father of algorithmic trading is  Richard Donchain . In 1949, he introduced the first rule based trading system, which became the foundation for modern algorithmic trading.   Jim Simons was the one who gave a major boost to high frequency trading (HFT). He founded Renaissance Technologies,a hedge fund that used fully quantitative models to trade in the market at a massive scale.   His firm revolutionized algorithmic trading by relying entirely on mathematical and statistical models, eliminating human emotions from trading decisions. . Before founding Interactive Brokers, Thomas Peterffy  had in 1987, created the first fully automated algorithmic trading system.   His was a game changer in the trading industry, as it significantly improved speed, efficiency, and accuracy in execute.                 YOU HAVE ANY DOUBT COMMENT BELOW ...
Read more