The differences between the stock market and FX market

The advantages and disadvantage of the stock market and the forex market have been explained Choosing which one to participate in is up to the trader

. It depends on their wants and needs, and the amount of time they wish to invest into trading

If you have to exchange one country's currency with that of other countrys currency, foreign currency exchange rates come
into play. For example if you have to go to Britain for a vacation, you have to pay in British pounds or Euro for local shopping.

For this you have to visit a bank for currency exchange. The banks will convert your currency to the currency you desire at the prevalent exchange rate.
If for every $1000, you get GBP 568.344, then each dollar is worth 0.568344 GBP. This value keeps fluctuating and you may get different amount for same $1000 at different times.

The traders buy or sell currencies and take advantage of this fluctuation to make profits. At times the retail customers
also participate in the currency exchange markets mostly as speculators in hope of making profits due to rise and fall in the
values of currencies.