FOREX
- Two-way trading market
- Twenty-four hour market
- Only 1.5%-3% of the total amount traded is required as a margin deposit, to begin trading.
- Dealing in an international market where buyers and sellers are ever present.
- Contracts can be closed/ liquidated on same or on any other day of one's choice.
- Interest is paid daily based on number of days the position is held in trade. Brokerage fee is based on a fixed amount per lot traded.
- Open trading-International Market place.
- locking is available.
STOCK
- one-way trading only
- Fixed opening and closing hours.
- Full capital outlay required.
- Need to find a buyer or seller in order to trade.
- Dividends paid only after period of time; e.g. quarterly.
- Brokerage fee is a fixed percentage of total value.
- A fixed place of trading-Exchange.
- There is no locking system.
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