XPro Markets - A Beginner’s Guide to Trading: Forex or Stocks?

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XPro Markets - A Beginner's Guide to Trading: Forex or Stocks?

Being confident enough
to become part of the global Online Trading Market requires an understanding of
what you are actually looking to invest in. Seems obvious, right? Well, it
actually may not be as simple as you think and this is why our team at XPro Markets has
created this article to clear things up for you.



One of the most common
questions of a beginner is whether it is best to trade CFDs in Forex or CFDs in
Stocks. So, if you are one of the many newcomers in the trading world who are
wondering which is the best market for you, between Forex and Stocks, today's
article will guide you through the basics.



What's
the difference?



Remember, CFDs are
'Contracts or Difference', meaning that they are a derivative product because
they enable you to speculate on financial markets, without having to take
ownership of the underlying assets.



CFDs in Forex, also
known as the foreign exchange market, give you the opportunity to predict the
direction in which you think a currency pair's price will move.

CFDs in Stocks refer to
partial ownership of a company's assets and profits, with the profit or loss
calculated as the difference between the purchase price and the selling price.



What
are the factors to consider?

While, of course, the
first main point to think about is which market you actually prefer, there are
some additional aspects that could help you narrow down your decision.



For starters, market trading hours differ for forex
and stock trading. The forex market is open for 24 hours, 5 days a week, while
stock exchanges across the world open at different hours, depending on the
specific region and exchange. For example, Hong Kong stock market hours will
not reflect those in the UK, because of general differences in culture and work
politics. It is also important to know that holidays around the world can
affect different assets, so XPro Markets makes sure you stay updated with all
the upcoming Financial Market Holidays.



Another aspect to consider is price fluctuation, which is measured by volatility and liquidity. Many
short-term forex traders seek high liquidity within the market, so as to buy
and sell more rapidly, while traders in the stock market open positions aiming
to profit in the long term, thus expecting a less volatile environment. Chart Analysis tools can help you
stay in the loop by better analysing price fluctuations of their favourite
assets.



Lastly, let's think
about how each market is influenced and
the importance of staying updated with global market news. When share trading,
there are elements that could directly affect your chosen asset, such as the
company's debt levels and earnings, as well as economic data and news reports.
But with forex, the focus is usually on the macroeconomics of each host country
of the currencies. For example, unemployment, inflation, and gross domestic
product (GDP) are aspects that could highly affect the forex market, as well as
major political events.



So,
which one do you choose?

There is no definite
answer. Each individual trader is different when it comes to personality,
experience, and preferences, and this is what keeps the markets booming. Some
traders may choose one market to start with, while others trade in multiple. It
is up to you to decide which market best fits your daily routine and personal
style. It is essential to take time to consider each option and its specifications, so as to be able to
reach a final decision.



Which
one do you believe would help you reach your trading potential?            

Source: XPro Markets - A Beginner's Guide to Trading: Forex or Stocks?

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