Options Trading For Beginners: The Market Guide On How To Start Investing For A Living With Technical Analysis Using Day & Swing Techniques. Make Money And Gain Financial Freedom (Stock, Psychology) by GRAHAM ELDER

Author:GRAHAM, ELDER [GRAHAM, ELDER]
Language: eng
Format: epub
Published: 2020-01-19T16:00:00+00:00

Chapter 8

Differences Among Forex, Stocks and Options

There are different reasons some traders love to use forex instead of the stock market. One of them is the forex leverage.

We will look at the disparities that exist between forex trading and stock trading.

Leverage

When it comes to stock trading, you tend to trade with a cap of leverage of two to one. You must have some requirements on the ground before these can be done. It is not every investor than ends up being approved for that margin account, and this is what a trader needs to be leveraged in a typical stock market.

When it comes to forex trading, the entire system is totally different. Before you can trade using leverage, you need to have opened the forex trading account. That's the only requirement that is out there, nothing else. When you open a forex account, you can easily use the leverage feature.

If you are trading in the United States of America, you will be restricted to a leveraging of 50:1 leveraging. Countries outside of the US are restricted to leverage of about 200:1. It is better when you are outside the US, than in the US.

Liquidity differences

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