Forex and securities are fundamentally different, and securities can generally be divided into three categories, namely stocks, funds and bonds. Securities do not include foreign exchange. These three products of securities are basically traded domestically, while foreign exchange is an international spot transaction. The two are different. All in all, foreign exchange is not a security.
What is the difference between Forex and Securities?
- Securities are basically transactions in the domestic market, while foreign exchange belongs to international spot transactions, which belong to the international market;
- The vast majority of securities transactions can only be bought up, and profits are obtained by buying low and selling high. Foreign exchange is different, foreign exchange can be profitable in both directions, you can go long when it goes up, go short when it goes down, and you can make a profit all the time;
- Securities transactions belong to domestic transactions. Since they belong to some regional transactions, there are specific transaction hours, while foreign exchange belongs to global transactions. When the market is closed in one region, another region starts, so foreign exchange can be traded 24 hours a day;
- The securities trading market is very small, so there are so-called “bookmakers”. The securities market is easily manipulated, but foreign exchange is different. The daily trading volume of the foreign exchange market is more than 10 trillion, and it will not be affected by anyone. control;
- Although the K-line chart of securities trading and the K-line chart of foreign exchange trading are similar, there are also certain differences. Many people can make profits by analyzing the K-line when trading securities, which does not mean that they are also trading foreign exchange. You can profit from K-line analysis.