on the stock market what is the difference between forex ,options, equities and futures?

Saturday, February 22, 2014 , Posted by Ryanita at 3:00 AM




Dustin J


on the stock market what is the difference between forex ,options, equities and futures?


Answer
A good reference for financial terms and definitions is here:

http://www.investopedia.com/terms/forex/f/forex-market.asp

What Does Forex Market Mean?
The market in which participants are able to buy, sell, exchange and speculate on currencies. The forex markets is made up of banks, commercial companies, central banks, investment management firms, hedge funds, and retail forex brokers and investors. The currency market is considered to be the largest financial market in the world, processing trillions of dollars worth of transactions each day.

Investopedia explains Forex Market
The foreign exchange markets isn't dominated by a single market exchange, but involves a global network of computers and brokers from around the world. Central banks use their massive buying and selling capabilities to alter exchange rates through their open market activities and in many cases will do so not with profit in mind, but rather for any number of policy reasons. Forex brokers act as market makers as well, and may post bid and ask prices for a currency pair that differs from the most competitive bid in the market.

What Does Futures Market Mean?
An auction market in which participants buy and sell commodity/future contracts for delivery on a specified future date. Trading is carried on through open yelling and hand signals in a trading pit.

Investopedia explains Futures Market
Volume in the futures market usually increases when the stock market outlook is uncertain.

http://www.investopedia.com/terms/f/futuresmarket.asp

How To Find Good Forex Broker?




Fin Pur


I am new in forex trading business. I would like to know if somebody has they experience with good broker? Please advice.


Answer
My definition of good broker is;

Quick response from the Customer Service people.
We can contact them almost instantly each working day.
They are ECN.
They charge small trading fee.
They offer great programs
They are regulated by as many regulation body as they can get.

But you can always find reviews of brokers at forex peace army




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