There are various types of trading, ranging from Gold, Forex, Crypto to Binary Options. However, among the options, Stocks and Forex are the more popular ones, because they are considered easier and more reliable. In addition, there are more sources of information about stock and forex trading than other types of trading.
But even though they are both in demand, these two types of trading are certainly different. Which one do you think is the most profitable? Let’s look at the following reviews:
1.Traded instruments
When viewed in terms of the instruments traded, stock trading is usually carried out under the supervision of The Exchange, while forex trading is carried out Over The Counter (OTC) which means the two parties who are buying and selling are making a deal directly between them. Therefore, from here we can see that stock trading is more standardized than forex. In other words, in trading stocks, someone may take part in buying and selling shares only f she/he has a share certificate, while in forex it is the opposite. Forex does not need an official license if you want to join in forex trading.
2.Market Trading Time
We can trade forex for 24 hours for 5 working days. It’s different with stocks. Stock trading can only be done at certain times, according to the region and the exchange’s opening hours.
3. Volatility
Volatility is an indicator in measuring short-term prices. In stock trading, stock prices usually tend to have fairly stable patterns and can be tracked over time. Meanwhile, forex trading, market volatility is generally very high, so the price of the currency traded can increase very quickly, but can also experience a rapid decline. Therefore, if a trader wants to make profits in the short term, then forex trading is the right choice. However, if you want to get profits for the long term, then choose stock trading.
4. Leverage
In forex trading, the leverage obtained can be a very large value. The concept is so that with small capital, the player can get profits. But it can also be a big loss. It’s different with stocks. Stock trading has less leverage, but with a safer level of risk management or a smaller level of loss.
