Key differences in the foreign exchange and stock market

Key differences in the foreign exchange and stock market

If you want to start trading in the financial market, you should think carefully about whether you have the ability and the specific knowledge for quality work in this market. Whenever you decide to do this, I advise you to initially approach trade from the perspective of your future actions and time. Consider exactly how you will trade, where you will study the material, at which platform you will trade, what kind of starting investment capital you consider, and only after that to start to act. This will help you avoid a number of initial mistakes and dispel the illusion of work simplicity in the financial markets.

Also, very important point is the definition of the market on which trading will be directly conducted, because other parameters, such as the trading strategy, will depend on this as well ( or sources of information. It is worthwhile to understand that it is very difficult and rather unrealistic to conduct fix apitrading on each market with the same tools. That is why today we will consider the key differences between these two markets, what data have an effect on them and how to create a strategy for each of them.

In my opinion, trading on fix apiforex differs from the stock due to the internal mechanism of the market.Thus, one event and one information cannot be interpreted identically for each platform, therefore one event in the stock market that will cause volatility on it may not have any impact on the currency market. Now, imagine that you are using the same strategy for each of them. Then, the system will display a trading signal, for example, for sale, and you will open a short position in the currency and stock market. But you will be able to earn from one market, and it is necessary to close a position on the second.

I propose you to consider the internal specifics of each market in order to understand what drives them, and how to form a strategy based on the market.

Stock market

In view of the fact that in this market trading assets are securities, the volume of which cannot be regulated by the state, but only by the company itself, they do not lend themselves to inflation. Therefore, initially for the purchase and sale of securities, you need to rely on the financial condition of the company. Thus, to study its financial statements, to make a forecast of the future value of securities on the basis of various mathematical models and so on. Another feature of the market is the fact that information about who purchased and what kind of securities is freely available, therefore, this is also an auxiliary element that can be included in the trading strategy.


Unlike stock markets, the dynamics in the foreign exchange market depends on macro statistics, namely inflation, GDP dynamics, economic stability of the country, as well as the monetary policy of the bank, i.e the interest rate. And if it is enough for the analysis of the company to go to its website and look at the reports, then it is very difficult to obtain such information in the forex market. In view of the increased volatility in this market, I would advise you to use speculative trading strategies or fix api arbitration algorithms – After all, 1 point of profit on Forex significantly differs from the stock indicators.

As for my approach to analysis and trading in these markets, as I wrote above, for the stock market I have created several models that allow you to analyze the reporting and let you know where the market will go. As for the foreign exchange market, I use a trading robot to generate additional income without my direct involvement.



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