Compare The Forex Markets With The Bond Markets?
The main difference between the bond market and the Forex market is that in the bond market you are a “lender”. You are lending your money to a company, a municipality, a country and in exchange they will pay you an interest rate. This interest income will be paid periodiaclly or at the end of the term.
In the Forex market you are actually a buyer. You are buying a position in a pair of currencies.
The Forex market is the largest market in the world with over $2 trillion per day being transacted. It is not just the large international corporations that make money in the Forex market. It is true that the Forex market can be quite risky. if someone does not take the time to properly learn the appropriate methods and strategies to manage and reduce risk they can quickly lose their money.
Personally, I use a very boring and conservative hedge trading strategy that consistently earns more in a month than any bonds would pay in a year.
If you enter the Forex market seeking thrills and excitement you would probably be better off going to Las Vegas…at least there you will get free drinks. If you are looking to learn conservative, long term strategies in the Forex market you can do quite well. There is plenty of upside potential in the Forex market if one wants to take the time to learn.
Paul
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Forex markets trade sideways. There is no upward bias. It is for gamblers and large institutions who have to do currency conversions . Institutions make money on the conversion, not the Forex trade. Gamblers lose, but the trading is stimulating and addictive.
Bond markets: Bonds held long are for older folks with income requirements. They have very little risk compared to stocks. However, bonds futures are much like the Forex. No real upward bias. The markets are populated by the large institutions and gamblers. The large institutions make money on commissions. The small gamblers lose money paying commissions and trading.
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Bonds are for people who plays it safe and forex is just the opposite. It really depends on your risk appetite. If you have an appetite for risk, go for forex. Of course before you do this, you will need to equip yourself with knowledge and experience first. Knowledge, read. Experience, practice trading. Gambling is just taking the risk. Forex trading is taking an educated risk.
See wat above the PAUL said