The Forex and stock market are two important pieces of the global economy. The Forex market is where currencies are traded, while the stock market is where stocks (pieces of ownership in businesses) are traded. Both markets can be used to invest money, with different risks and rewards.
The Forex market has been around for centuries, with traders exchanging goods and services for other goods and services. Over time, this evolved into people trading money instead of physical items.
Currencies are now bought and sold based on how much faith people have in them – which currencies will rise or fall in value relative to others. This makes the Forex market incredibly complex, as it’s constantly reacting to news events all over the world.
The stock market is a bit younger than the Forex market, dating back only a few hundred years when joint-stock companies started issuing shares of their businesses to investors. A share gives you a small piece of ownership in that company – meaning you get a say in how it’s run and stand to make money if it does well financially (via dividends).
The stockmarket lets investors bet on whether they think individual companies will do well or not; if they’re correct then they can make large profits!
