How is the Forex market differs from the stock market?
As a result of its global dimension, the Forex market is open 24 hours a day, which enables investors to correct their positions at any point in time. Given the large number of players, the Forex market is tight spreads and virtually no price gaps. The lack of price gaps allows investors to count the non-slippage order execution. However, in a very volatile market, there is a possibility of slippage.
The large volume of participants also reduces the possibility of insider information. Simply put, there is never a case of complete currency collapse in a developed country. Volatility of leading currencies rarely exceeds 1% per day, compared to the volatility of the stock, which may fluctuate by 10% during one trading session. The Forex market generally provides more opportunities for leveraged trading.
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