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What are some of the differences between trading stocks vs. futures vs. forex?

I trade only stocks right now but I’ve heard people swear by trading futures or forex. I’ve never tried either. Is one more volatile and therefore easier to make more money?

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6 Responses to “What are some of the differences between trading stocks vs. futures vs. forex?”

  1. thewallstreethunter said :

    They are totally different investment vehicles, if you dont know about them, i would stay clear,, you should read some articles like the ones on http://www.thewallstreethunter.com very informative,, the key to any investing is knowing all the info first, then making a decision….

    Good luck

  2. goodluck.88888 said :

    Trading stock is buying or selling shares of the corporation which is register by Stock Exchange Market , then you made earn money by paying less to purchase and sell it at a higher price.
    Forex is trading on the contract of the future of the currency, they have different month on different currency, you could loss your all your initial investment money if you don’t know what you are doing. Even a very experience or professional trader will loss all the money.
    There is a lot of Forex agents keeping calling randen people
    to open an account and made a lots of money loss all their money too. Try to read Wall Street journal or Investor Business Daily to understand the basic before doing anything, It is very risky (almost like gambling)

  3. b2fnow said :

    The main difference between trading stocks and futures is the leverage involved.

    In a stock margin account, you can trade at 2:1 or 4:1 leverage. In a futures account, you can trade the E-mini or Dow mini futures with 20:1 or 40:1 leverage. This causes your profits and losses and account value to be extermely volatile, and very dangerous if you trade at maximum leverage. In a futures account, you can lose more than you have invested.

    Forex is just another form of futures account, except here, the maximum leverage is 200:1. Wo, how much trouble can we get into now? You have to be aware of the economic reports for the currencies traded and the US reports, like GDP, retail sales, and particularly interest rate adjustments and differentials. Unless you are willing to trade gap trades, the opportunity is very little here compared to the huge move from the report. These trades can be very plodding, in between reports. Or some big news announcement will break, or someone declares war, or sets off a bomb, and blows you completely out of the trade. Trading the forex is not for the beginner or faint of heart. Find a good simulator and practice, practice.

  4. Michael M said :

    Forex and futures are both high leveraged in comparison to stocks.

    Forex and futures tend to have lower commissions and fees.

    The principles of trading all three are the same. You can make or lose money in any of them.

  5. d10 said :

    1. yes, it is more volatile.
    2. not at all

  6. mark mc donnell said :

    forex is better, less pairs to track, good leverage built in, excellent liquidity and accessability, 24 hour market, trends last for days weeks or months, no commissions, just get on and ride.

    what a market. no negatives. its the future of worldwide trading.

    good trading
    mark mc donnell
    http://www.forexearlywarning.com




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