Internet Day Trading: the Forex market and the Stock exchange

Article by Carlo Callone

There are two main ways for internet day trading: the stock market and the forex market (known with other names as ?currency trading? ?foreign exchange? or ?FX market?). The basis and the background for forex is all the trading that takes place between two countries with different currencies is and the background of the trading in this market.

Established in the early 1970?s, the forex exchange has enjoyed exponential growth and widespread popularity over the past few years. It is not based on any one business or investing in any one business, but the trading and selling of currencies.

The most important feature of the forex market is the huge amount of transactions that occurs on this market. Millions and millions are traded daily on the forex, almost <U>US$ 1.5 trillion</U> is exchanged every day. This amount of money is much higher than the money traded on the daily stock market of any country.

Until recently, only governments, international banks and large financial institutions had had access to the foreign exchange market and many other institutions from other countries were all involved in this special kind of trading. But now, there are online brokers that provide private traders on a relatively small budget with direct access to the forex market.

The main advantage of internet day trading on the forex market is that currency can easily be liquidated, meaning it can be turned back to cash fast, or often times it is actually going to be cash. It is traded mainly through the <U>24 hour-a-day inter-bank currency market</U> ? the primary market for currencies: the availability of cash in the forex market is something that can happen fast for any investor from any country.

While the stock market is something that takes place only within a country, the forex market is global, worldwide. Investing in the stock market means investing in firms and products that are within a country, on foreign exchange market the currency of one country is exchanged for those of another. Forex literally follows the sun around the world.

While the stock market follows the business day, and is closed on banking holidays and weekends, the forex market is open 24 hours a day because every foreign exchange market in the world works from 8 a.m. to 4 p.m. in their respective time zones. As one market is closing, another market is opening and this circumstance allows the currency traders a potentially endless trading time.

If you invest in the stock market of any country you invest only in that countries currency, say for example the Euro, and the European stock market, or the United States stock market and the dollar. The internet day trading in the forex market is much more versatile and allows trading with different currencies and countries.

However this is not an easy financial market: internet day trading on forex can be very lucrative but there is a consistent risk to lose money too. If you would like to start trading the forex you need the right education and help to build an effective and secure trading plan.

About the Author

Are you planning to start forex trading? Professional trader and author Peter Bain?s Video Forex Course demonstrates simple yet powerful pivot currency trading systems used by professional traders. Click here to learn more.

Source: http://australiadaytrading.com.au/internet-day-trading-the-forex-market-and-the-stock-exchange/

nortel volt volt larry crowne ism dominique strauss kahn starbucks