Money market means: trading in different currencies. – For example, an American company needs euros to buy cars in Germany. – She pays the euros with US dollars.If, for example, she has to pay € 10 million on June 1, she can decide whether to buy the euros now – or on June 1 – if she believes that “will go up by then” “the euro exchange rate (so it will be more expensive than the dollar) will buy the euros now. – And vice versa.
What is Forex (Money Trading) And How It Works
Sometimes it can make sense to buy a different currency (e.g. Swiss francs) instead of buying euros directly and then the euros – depending on how the exchange rates of the currencies are.
Stock trading is trading in stocks – shares in companies. A private individual or a company can buy shares from, for example, Deutsche Bank or GeneralMotors in order to invest their own money well and profitably, since every shareholder (shareholder) participates in the profit of the company of which he holds shares. – But you can also buy the shares to sell them after a certain increase in value (at a profit) – this is called speculation.
Of course, this also works with the currencies (currency speculation) and is VERY risky.