Free Forex MQL Training

There are many reasons that convince us to believe trading Forex could generate results which are almost independent of trading stock (or rather equity). Here are some of those reasons.

Fundamentals

Currency pairs pricing depends on the economic conditions of two different countries while stocks usually depend on the economic status of a company, an industry, or at most one country. The bottom line is that the fundamentals behind Forex and equities could be significantly different.

Market Open Time

Trading Forex is 24/5 which means you always have the ability to make your decisions based on the current condition of the market. Stocks are usually traded when the exchanges are open.

Risk Opportunities

Leverage is higher in Forex which could result in higher gains and or losses.

Expenses

You usually do not pay commission to trade Forex. In other words trading Forex could be cheaper.

Trade Direction

You can easily trade currencies in both long and short directions. Trading stock in short directions come with limitations. This means that when you trade stock if the market goes down it is very likely that you are also losing money while in Forex if you go in the direction of the market whether up or down you are making money.

Conclusion

These does not necessarily mean that trading Forex is more profitable but they can indicate that your results from trading currencies could be way different from trading equity. I have recently made a short comparison between the behaviour of my forex trading system and the Dow Jones Industrial Average. Click here to read the short article. You may find it interesting.

If you have any comments about this text please contact This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .

Risk Warning: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.