What is the difference between stock trading and forex trading?
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There are numerous opportunities in the world of trading. The most popular two methods are stock trading and forex trading. Stock trading is buying and selling shares in companies. It's a financial investment in the success and advancement of corporations. Forex trading is the exchange of currencies. The traders sell and buy currencies, speculating their price fluctuations. Understanding the Basics In order to understand how stock trading is different from forex trading , one must first understand their foundations. Both forms of trade are part of an establishment that defines its functioning. Stock trading is based on stocks. Stocks represent ownership in a firm. When trading stocks, you are essentially buying a share in a business. Forex trading has nothing to do with company possession, however. It means trading currency pairs . Traders in the foreign exchange market try to earn a profit out of fluctuations in the exchange rates of these currencies. The stock market and the ...