Investing in Stocks vs Forex

Question 1

what are equities?

Answer 1

stocks

Question 2

what are the 3 main benefits of trading forex?

Answer 2

• buy or sell anytime
• trade 24 hours a day
• higher leverage

Question 3

are currencies traded in pairs or singularly?

Answer 3

pairs

Question 4

what’s more flexible with regards to trading times?

stocks or forex?

Answer 4

trading forex can be done all day every week day, whereas stocks are only tradable during stock market hours

Question 5

what does ROI stand for?

Answer 5

return on investment

Question 6

is ROI higher in the forex or stock market?

Answer 6

forex market

Question 7

what does leverage allow you to do?

Answer 7

leverage allows you to control larger sums of money

Question 8

who offers leverage to traders?

Answer 8

brokers

Question 9

generally, what is the maximum leverage offered to traders in the stock & forex market?

Answer 9

stock market: 1:5 (5x)
forex market: 1:200 (200x)

Question 10

what does a broker do?

Answer 10

brokers facilitate transactions between traders, buyers or sellers

brokers are middlemen who ensure the transaction runs smoothly

Question 11

why does forex market offer higher ROI?

Answer 11

higher leverage is offered by brokers in the forex market