Forex versus Stocks, What are the Essential Differences
There are also several differences in how traders approach creating a strategy to purchase or sell a forex pair or a stock. Both forex and stock trading can be accomplished by buying or selling baskets, such as the dollar index or the S&P 500 index.
Forex trading and stock trading are activities where investors can access capital markets. The key differences between the two activities are the underlying instruments. Where investors who purchase and sell stocks are focused on companies and indices, investors who trade forex are concentrated in currencies. The strategies used to trade stocks and forex can be similar but very different. Traders who engage in both forex and stock investing might use fundamental and technical analysis to determine the future movements of each asset.