Forex trading is constantly expanding ever since it was introduced in Kuwait by the first Kuwaiti shareholding company National Bank of Kuwait in 1952. In 1995, the Kuwait stock exchange introduced its first electronic trading system. While forwards were later introduced in 1998.
The Kuwait stock exchange market’s capitalization has been one of the largest in the Arab region and market, with a net worth of $100 billion in market value. KSE has a deeper stock market than any other regional peers.
Forex Trading vs. Stocks
The forex market and the stock market are the main financial markets that increase the volumes of trade and get traders profits, although they are very different .The forex market is a very liquid market with almost $4 billion traded every day, while the stock market has a $74 daily trade volume.
In Forex trading, the market is accessible 24 hours, from any country; hence it’s a global market.
As for stock trading market, it’s done a bit differently and traditionally. With the stock market, stocks are traded on exchanges, as buyers and sellers meet up to agree on the price. Some are traded through physical locations, such a trading floor .The other type is a virtual exchange, where trades are done electronically through the computers.
In both markets, there are as much advantages in the market as they are disadvantages. For instance in the stock market, the higher the return the greater the risk involved and can also be time-consuming. Once you purchase a stock, it doesn’t just end there, you need to keep on track and monitor your stock position to know if it ends up being a bad investment option.
With over thousands of stocks available in the market, it’s important to only focus on one or few stocks to give you an accurate analysis to trade with. Same goes for when you’re dealing with pairs of currencies in currency trading, focus on one or few currency pairs.
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