Loan and Credit and the Stock Exchange – differences in trading stocks and currencies

If you want money to earn for you, investing is a sensible idea. Normal savings accounts earn less than one percent interest, while investments generate an average of eight to 10 percent. Two of the most popular investment paths are shares and Loan and Credit.

Most people understand investing in shares

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Basically you buy a small stake in the company. As the company is doing well, the stock price is rising. When a company performs particularly well, some shares pay dividends. Shares are a popular part of most investment projects such as funds or individual retirement accounts. There are many online transaction services that will facilitate your trading. You can also use investment funds that handle transactions for you.

Loan and Credit means currency exchange. As the name implies (foreign exchange), it deals with the international market. However, trading on the currency market only focuses on one thing: currencies. If you’ve ever gone abroad and exchanged PLN to your local currency, you’ve made a transaction on the Loan and Credit market.

The difference is simply in scale. The Loan and Credit market generally revolves around eight major currency pairs including the Euro, US Dollar, Yen, British Pound, Australian Dollar, Swiss Franc, Canadian Dollar, Australian New Zealand Dollar and South African Rand.

Advantages and disadvantages of trading on the currency market

Advantages and disadvantages of trading on the currency market

Foreign exchange can last almost 24 hours a day from Monday to Friday. The Loan and Credit market is not related to the geographical area, so even when one stock market closes another opens. This gives you the opportunity to trade around the clock throughout the week. However, not all trading hours are optimal. Just because the market is open does not mean it is active. To earn money you must trade in an active market. The best trading periods occur when the markets that relate to the currency you trade overlap.

This is a volatile market. If you are interested in a fast, exciting pace of trading, trading on the Loan and Credit market provides you with it. The Loan and Credit market has more transactions every day than the New York Stock Exchange (NYSE). This means great opportunities for people who prefer short-term investments with high turnover.

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