Stock trading refers to buying and selling issued and listed stocks among stock investors at market prices. In contrast, stock trading adopts T+ 1 trading mode, with only 4 hours a day and low liquidity. Therefore, if there is a change after buying, there is nothing traders can do. Stock trading can only be long, that is, investors can only buy up.
The following are the differences between foreign exchange trading and stock trading:
1, trading time
Foreign exchange: it can be traded 24 hours a day, 5 days a week.
Stocks: trading is allowed for 5 days a week, and the trading time is 4 hours a day-from 9: 30am to11:30pm and from 13pm to 15pm in the afternoon.
2. Transaction costs
Foreign exchange: An efficient electronic trading system allows investors to trade directly with brokers, which saves a lot of bills and middleman fees and further reduces transaction costs. The cost mainly comes from spreads, slippage caused by various reasons and commissions that some brokers may charge.
Stock: trading commission, stamp duty, transfer fees, etc. Must pay, add up to more than five thousandths, the cost of buying and selling a stock is as high as 1%.
3. Trading method
Foreign exchange: foreign exchange transactions can be two-way transactions, which can go up or down.
Stock: it can only go up, once it falls, it won't make money, so it can only wait.
4. Mode of delivery
Foreign exchange: T+0 trading, that is, trading can be carried out at any time.
Stock: T+ 1 trading, that is, trading can only be carried out on the second trading day.
5. Trading funds
Foreign exchange: foreign exchange brokers will provide leverage for traders, and ordinary brokers can provide hundreds of leverage at most.
Stock: no leverage. Traders can't be small and big.
6. Various transactions
Foreign exchange: the combination of currency pairs is limited. Currency pair is the exchange rate of foreign exchange transactions consisting of two currencies. For example: USD/EUR. Among them, the dollar is called the base currency and the euro is called the secondary currency.
Stocks: There are thousands of stocks in the stock market.
7. Profit scale
Foreign exchange: there is no price limit for foreign exchange transactions, and there is no limit on the price range. Under normal circumstances, the daily fluctuation range of the foreign exchange market is 1%. When important data is released or major events occur, the fluctuation may reach more than 2%. When the leverage ratio of the non-margin return is 10 times and the market fluctuation is 1%, the investor's profit opportunity is 10%.
Stock: The stock market and the secondary market in China are subject to price limit, which is limited every day, with the maximum increase of 10%.
8. Risk control
Foreign exchange risk can be controlled, the degree of loss can be grasped, and stop-loss price or take-profit price can be set.
Trading orders issued in the stock market are restricted by certain conditions, and the risks are difficult to control. Foreign exchange trading can issue trading orders at profit point or stop loss point in advance to protect profits and prevent losses.
9. Transparency
Foreign exchange is global, the market is objective and fair, and it is not easy to be manipulated. The daily trading volume of the international foreign exchange market is 5 trillion US dollars, with strong liquidity and open market and data. Even a country's government can't influence the trend of the foreign exchange market.
The stock market is easy to be controlled, information is easy to be tampered with, and large households withdraw funds, which is easy to cause losses and the risks are difficult to control.
Finally, regarding risks, the risks of all kinds of investments are actually equal, and all kinds of investments need to be cautious. Although the fluctuation of the foreign exchange market is sometimes small, after the leverage amplification, the risk of investors will be amplified together with the income.
In addition, although the foreign exchange market is much larger than the stock market, there will be no institutions like the stock market to control the stock price, but this does not mean that the foreign exchange market is risk-free, because it has global characteristics, and the reasons affecting the fluctuation of the foreign exchange market are more complicated, such as the expected role, the role of interest rates, the expected inflation rate, the correlation between monetary assets, the correlation between monetary assets and gold, the correlation between monetary assets and crude oil and commodities, and the intervention of central bank policies in various countries.