Foreign exchange margin trading has many advantages that the stock market cannot match:
The stock market can only be traded during a specific day period, usually from 9:30 to 4:00 in the afternoon. Especially if you still have a job of your own, you will face a dilemma-either give up your job or exit the transaction. For foreign exchange margin trading, trading is available 24 hours a day, five days a week. You can invest in margin trading at night in your spare time.
There are hundreds of stocks in the stock market, so that stock selection will be difficult. In the foreign exchange market, currency combinations are minimal, which allows you to concentrate on these currency combinations and quickly catch their pulse.
The stock market's trading volume is much smaller than that of the foreign exchange market, and tens of millions of non-professional investors affect the regular operation of the market, making it more difficult to predict market movements. The foreign exchange market is the world's largest financial market, and it also includes many large participants-banks, investment funds, companies, and other financial institutions. Therefore, no matter how many individual investors participate in the foreign exchange market, the impact on prices is minimal.
Another shortcoming of the stock market is that investors cannot act in a bear market and can only be caught. When the economy is booming, most investors can make profits, but economic development is alternate. When the recession replaces development, investors can only hold their positions. Investors can profit in the foreign exchange market regardless of whether the economy is developing or in recession. This is the shorting mechanism of foreign exchange margin.