| Difference |
Forex maket |
Stock market |
|
Transaction hour |
Forex is a global 24-hour transaction |
Stocks are traded for a fixed 8 hours a day |
|
Trading mechanism |
Forex is T+0's two-way trading mechanism that can be long and short |
Stocks are T+1 one-way trading mechanism that can only do long |
|
Fluidity |
The forex market is huge and liquid |
Due to restrictions on stocks, liquidity is weak |
|
Transaction restrictions |
As an over-the-counter market, the forex market is not subject to any rules for trading |
Stock trading will be restricted by various trading mechanisms such as price limit |
|
Low cost, high leverage |
The forex market can provide higher leverage, traders only need to take out a small part of the margin |
There is no high leverage in the stock market and you need to spend more trading funds yourself |
|
Market transparency |
The forex market is highly transparent, and traders often predict how to trade next through analysis |
-The transparency of the stock market is low, and market liquidity signals are usually in the hands of large financial institutions or consortia |