what is the difference between stock and forex
By gianelly
@gianelly (75)
Netherlands
January 12, 2007 7:35am CST
can someone help me with this
i can trade forex butt what are these stocks
help
4 responses
@neo2neo (461)
• India
12 Jan 07
I guess it will be easier for you to understand stocks, since you already are trading in Forex.
You are familiar with, "I bought a 100 British Pounds"
Now how does it sound, "I bought a 100 Microsoft shares"
You buy shares of a company which is doing good or is expected to do well in future. You buy at lows and when the price goes up due to the good performance of the company, you sell your stake and book profits. Just like you buy currency when it falls and take advantage of the fluctuations in the price.
This is the very basic idea. We use the same tools like Technical analysis, volumes etc to judge both the markets.
You could go to investopedia.com and learn more details.
All the best making money!
Thanks.
@Idlewild (6090)
• United States
14 Jan 07
Yes, when you buy stocks you're actually owning a small part of a company. You can make money if the share price goes up, and also some companies pay dividends, you can make money this way too, especially if you have the dividends reinvested in additional shares.
@smille (829)
• India
12 Jan 07
forex is foreign exchange and stock is share markets equites. u seem to be very much new to all these fields, so its better for u to keep away of the stock and forex market,otherwise u would loose money. its better if u invest in mutual funds and other safer options. or study thouroughly before investing.
@harivinod (781)
• India
13 Jan 07
stock deals with shares of the companies but forex deal with currency
