5 Major Differences in Stock Markets & Forex Markets
5 Major Differences in Stock Markets & Forex Markets

5 Major Differences in Stock Markets & Forex Markets

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Stock & Foreign exchange (forex) market will be the two most-demanding instruments in the investment world. It should also be noted that both investment instruments have considerable risks when not balanced with adequate knowledge and experience. However, it should be noted that stock market trading and forex are two different things and each has a very significant difference.

Major Differences in Stock Markets & Forex Markets

Here is a simple main difference antforex figs and shares:

1. Instruments traded,

Instruments traded on the Stock Market i.e. a letter of proof of ownership of a limited company or company. Whereas the instruments traded at Forex are the currencies of the world’s countries with a system comparing the value of a country’s currency to that of another country’s. Other than the stock market, a company cannot be compared to other companies

2. Liquidity

Liquidity from forex markets to tar power is alone for traders where this Forex Market has the most transaction turnover compared to other instruments. Whereas liquidity in the stock market is still heavily dependent on the capitalization and popularity of stocks transacted by domestic financial firms or international fund managers.

3. Volatility

In FOREX, Changes in price Movements that drastic short-term leads many investors to prefer short term trade (short term trade) and rely on wild volatility to benefit from rapid price changes in the market. As for the Stock Market, stock price movements tend to be more stable and sometimes restricted by stock exchange regulators so that the rise and fall do not exceed the limit specified on the day.

4. Leverage magnitude

Differences between stock market and forex not on the leverage side. A person could have transacted with minimal or small capital compared to real capital through leverage features. Leverage differences lie in leverage ratios such as: Trading in forex markets offers up to 50:1 higher leverage, whereas leverage in stock markets is very small limited to certain stocks and a maximum of 1x fold or even no leverage feature on some security.

5. Timeline – Trading of the Stock Market and Forex

Another last difference is time trading. Trading sessions for stock markets are limited to stock exchange hours. Opening and closing hours in each country vary. For example, on the Indonesian Stock Exchange (BEI) on a normal stock exchange day (During pandemic). In the forex trading market it remains active throughout the day due to forex trading around the world which has time differences. In forex markets there are 4 trading sessions in the world.


In the stock market mainly in Indonesia, Features Automatic Order is becoming popular only in some securities but there are many more features that are still not allowed by regulators such as Copy trading and Robot Trading, as opposed to forex where this allows it to be done. Although this Method is actually like a double-edged because of the potential danger by which you automatically hand over account control to a software, it is not uncommon who can reap results consistent.

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