Monday 19 October 2009

The Difference in Currency Trading and Stock Trading

By Rakesh Tambe

We all basically understand the concept of currency trading right at this moment.We know that the US dollar changes in value daily, and that other currencies may be performing better in trading than ours- some consistently better. Many people do or think they do have a basic understanding of the stock market and financial futures. Currency trading can be a viable part of a diversified stock portfolio,but you must understand that trading currency is quite different from stock trading.

You can start trading forex with Fap Turbo. This is an automated currency trading robot and makes money without you having to do anything.

Currency trading is done in a different way than stocks and futures. While the stock markets are regulated by the exchange and have a particular governing body in every country, there is no such control over currency trading. There is no government authority to govern the trades. Therefore the arbitration cannot exist if a dispute
arises in a currency trade. In essence, the forex market works on the trust between traders and trades are made as mutual agreements.

The mutual agreement that exists in the forex market actually makes it a fair trading platform than the stock market which is more organized. As the traders depend on each other to make trades so they must also trust each other. They rely on each other for their trading and all the traders work closely with others and at the same time they also try to win their trades as compared to others.

The other very important difference between these two markets is the use of news and data that can be gathered from the business associates. In the stock markets the use of inside news and data is prohibited and even treated as crime in most countries. But in currency trading you are free to use the latest news or data to your advantage. On the contrary the inside news or data is provided to the forex traders even before they are released in public.

Stocks and futures are traded through a broker who makes a nice commission on the transaction. Currency trading markets do not use commissions, so the investor must know this fact. For this very fact, currency trading might not be the first choice for the novice trader. You can start your portfolio with some solid standing stocks while working with a broker, and then slowly start diversifying after gaining some
market knowledge and some basic financial education. Once you are ready for currency trading, know the same simple rules that apply to all trades: know your market, know your limits and understand the risks involved.Only invest the money that you can afford to lose and won't need for the period of investment.

If now you think you are ready to start currency trading then there is one more good news for you. In forex market you can take advantage of an automated robot for trading on your behalf. This robot is designed to make profitable trades. Fap Turbo is one of the most successful robot available in the market today. Fap Turbo is a trusted robot and many people claim to double their investment in a month with this.

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