{"id":2020,"date":"2022-03-04T07:55:53","date_gmt":"2022-03-04T07:55:53","guid":{"rendered":"https:\/\/www.todayreels.com\/?p=2020"},"modified":"2022-03-04T07:56:14","modified_gmt":"2022-03-04T07:56:14","slug":"forex-vs-stocks-in-the-uk-what-you-should-know","status":"publish","type":"post","link":"https:\/\/www.todayreels.com\/forex-vs-stocks-in-the-uk-what-you-should-know\/","title":{"rendered":"Forex vs. stocks in the UK: What you should know"},"content":{"rendered":"

UK businesses have an option outside of selling UK stocks or holding UK dollars.\u00a0<\/span><\/p>\n

They can sell their products in foreign currency. UK companies also can take on loans in a foreign currency. UK corporations might not always know which choice is the right one.\u00a0<\/span><\/p>\n

When it comes to investing, there’s a few different avenues that you can go down to get started, one <\/span>popular<\/span><\/a> choice for many people in the stock market.\u00a0<\/span><\/p>\n

You have probably heard about stocks since you were very young – heck, maybe even before then.\u00a0<\/span><\/p>\n

However, many people do not realise that stocks aren’t the only option for dealing with investments. Another option is currencies.\u00a0<\/span><\/p>\n

Many people often refer to this as forex trading. This guide will help introduce some basic concepts behind currency trading and why some people believe it might be more suitable than investing in stocks.<\/span><\/p>\n

Why isn’t forex trading the same as stocks?\u00a0<\/b><\/h2>\n

It is one of the most common questions people tend to ask when they first hear about forex trading.\u00a0<\/span><\/p>\n

The answer, when boiled down, basically comes down to supply and demand. There is a limited supply of shares with stocks (although companies can make more if they need to).\u00a0<\/span><\/p>\n

In contrast, an infinite (or rather, near-infinite) amount is available with currencies. Hence, it’s called forex, which stands for foreign exchange.<\/span><\/p>\n

When you trade-in stocks, it’s pretty easy to buy and sell them. Suppose you see a company selling cheap and want to get involved with them, great.\u00a0<\/span><\/p>\n

However, this isn’t the same for forex trading – here, you’re dealing with currencies of all different countries worldwide.\u00a0<\/span><\/p>\n

Plus, not only do you need to be able to choose which currency or currencies you want to get involved with (and then hope that they go up in price), but also when it is best to get involved.\u00a0<\/span><\/p>\n

It can be tricky – especially if we take Brexit as an example.<\/span><\/p>\n

Since the UK voted to leave during their referendum on EU membership, we have seen significant changes happen within the value of certain currencies:<\/span><\/p>\n