We talk about the differences between the foreign exchange market and the stock market in this small foreign exchange class.
Compared with the huge A -share market with 150 million shareholders, the popularity of foreign exchange investment markets in China seems to be far different.On the one hand, it is related to China's financial market openness, and on the other hand, the natural investment risks of the foreign exchange market have also filtered some financial investors.
Although the popularization rate of the foreign exchange market is far less than the stock market, compared with the stock market, the advantages of foreign exchange investment are quite prominent.
Let's take A shares as an example. What are the differences between deconstructing the foreign exchange market and the stock market?What are the advantages of investing in the foreign exchange market?
Different trading time.
Stock market: Monday to Friday, 9:30 am to 11:30 am, 13:00 pm to 15: 00 pm, 4 hours a day.
Foreign exchange: every five days, 24 hours of all -weather transactions.
Different transaction methods.
Stocks: A shares do not have a short -term mechanism. You can only buy up, and the price decline will lose money.
Foreign exchange: For more short, two -way transactions, you can buy both up and down.
Method of delivery
Stock: T+1 transaction, that is, the second working day can be sold.
Forex: T+0 transactions, buying and selling, support high frequency transactions within the day.
Volatility different
Stock market: A -share settings limit limit limit, volatility is 10%, and foreign stock market fluctuations are generally about 20%-30%.
Foreign exchange: Foreign exchange fluctuations are often about 1%-2%. After using leverage transactions, the volatility is also indirectly enlarged.
Trading places
Stocks: Stock transactions belong to exchange transactions.China Stock Exchange includes Shanghai Stock Exchange and Shenzhen Stock Exchange.
Foreign exchange: Foreign exchange transactions are OTC transactions, commonly known as off -site transactions.There is no fixed place in the transaction, which is an invisible and decentralized trading market.It constitutes a huge global market by different market participants.
Leverage
Stock: No lever, that is, how much is 1 shares, how much money is spent to buy.
Forex: margin trading model, through leverage, uses small.Taking 100 times lever as an example, 1,000 yuan can leverage 100,000 funds, but the risk of enlarged income is also significantly enlarged.
transparency
Stocks: A shares are in a rapid development stage, and the regulatory policy is also constantly improving. There are phenomena such as mouse warehouses, and the dealer's malicious manipulation.
Foreign exchange: The foreign exchange market is a global market. The daily transaction volume is as high as 5 trillion, and the liquidity is extremely strong. It is not easy to be manipulated by a single institution or individual. It is that a country government cannot interfere with the trend of foreign exchange market.
The foreign exchange and stock markets mainly exist in the above differences. Compared with stock transactions, foreign exchange transactions will be more flexible.What investors need to pay attention to is that the foreign exchange investment of the margin trading model has a leverage effect. Therefore, it requires higher requirements in risk control. Investors need to fully understand that leverage has enlarged the risk while enlarging the income.
