IS IT BETTER TO TRADE FOREX, FUTURES OR STOCK?
- AlexJones
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There’s a lot of opportunity going around when you area day trader looking to find the most profitable deals on your investment. Day traders can trade not only in stocks but also in futures and forex. But let us first examine the attributes each of ورود به فارکس,IS IT BETTER TO TRADE FOREX, FUTURES OR STOCK? Articles futures, and forex.
Attributes of stocks
A stock as security stands for ownership in a corporation. It also stands for the stock owner’s claim on a portion of the corporation’s income and assets.
Any public traded company issues stocks.
While there’s no provision for leverage, there is a commission that must be paid to the broker. There are securities regulators all over the globe regulating th behaviour of stock trading through their control of stock exchanges. The latter are accountable to securities regulators. The liquidity varies across the board.
Taxes must be paid on stocks. The trader may pay long term or short term holding taxes. Of the financial instruments under discussion, only stocks entitle you to receive dividends. When it comes to the ease of taking a short trade, the results vary across stocks (but going long is definitely easier).
Attributes of futures:
A futures contract is basically an agreement to purchase/sell assets at a predetermined price, delivered and paid first a future date.
Shares and commodities can be found in a futures contract.
Wel known futures stem from commodities, primary examples being metals, grains, energy, etc. there are futures trading regulators in every important region of the world.
Leverages are available. The liquidity varies across futures. Ass far as taxation goes – Irrespective of the holding period length, 60% of gains are considered long term capital gains.40% are deemed short term capital gains.
There are no dividends on futures. In the case of futures, it is easy to take a short trade.
Attributes of Forex:
FX trading is the trade-in national currencies taht takes place in a global decentralised marketplace. The trade takes place in currency pairs.
Well-known currency pairs include EURUSD and USDJPY.
Leverages form a major attribute of FX trading.
As far as broker commissions go, there are none. Nevertheless, the ‘spread’ or the difference between the buying and selling price of the underlying asset, has to be paid to the broker. Despite its global nature, FX trading has no central world authority as a regulator. Rather, securities regulators are regional ion nature and the world is divided for regulation purposes into RMs or Regulated Markets. Some markets are more strictly regulated than others.
When it comes to liquidity, the FX markets are without peer. With over $ 6 trillion traded globally each day, liquidity touches the sky. The taxation regimen is the same as that for ordinary income. Dividends play no role here. Taking a short trade in currency pair trading is easy.