somrat4030
Well-known member
Forex Forum, You can know the proper difference between forex trading and gambling.
Forex trading, sometimes referred to as FX trading, is similar to buying and selling other securities like stocks and is often done through the foreign exchange market.
Since you're trading in what is essentially the largest global marketplace for exchanging national currencies, trading forex means that you are always trading a currency pair - or selling one currency while also buying another at the same time. If the currency you buy moves up against the currency you sold, you end up making a profit.
On the other hand, Gambling happens when you play any game of chance or skill, in which you stake something valuable that has potential for a prize win..
Often, people who gamble risk money in hopes of winning a greater sum of money. For example, you might risk the cost of a lottery ticket for the chance at winning a large multimillion dollar jackpot.
When we think about gambling, often places like casinos or racetracks come to mind, but gambling occurs in other places too, like gas stations, church halls, at sporting events and on the Internet.
Newbies always ask these kind of questions that is Forex Gambling? This is why we have decided to explain to you the differences between Forex and gambling. A Forex trading deal will become a gamble when it comes to gambling as a jackpot machine in a casino where the hope of winning is based on luck alone. A "blind" and no-strategy trading on the Forex market, like any other gambling game, will lead to a financial failure of the gambler. The results will be worse when the Forex gambler does not set a stop loss for their deals.
Here is the different between Forex trading and Gambling:
1. Numbers
Before I get into morals, ethics, legal issues, and legitimacy, let us just focus on the reason anyone gambles or trades Forex: to make money. There is absolutely no comparing the amount of money traded daily in the Forex market to that of the gambling arena. In fact, I am not aware of any industry (ok maybe there are a few exceptions) that handles so much money on a daily basis. Depending on who you ask, there are anywhere between 2 and 5 trillion dollars traded daily in the Forex market. I could not find exact statistics about how much money passes through the casinos daily, but I am pretty sure the numbers do not compare.
2. Trading Forex as a Business
If the trader is not employing a strategy, he is not playing from his right mind. There is a need to do that. Similarly, betting is gambling in a casino, but the way you approach it and adopt tactics turns it into a serious business. An experienced player who is playing a certain card game that he has developed skill at will get an edge over the game. The forex trader must have a strategy on how to go forward in the trade. This has to be followed thoroughly and implemented with discipline. In the end, make a total of wins, and losses to get the final picture.
3. Players
The Forex market is backed by the biggest and most important financial institutions on the globe. It is true that traders do not trade with the banks, but rather on the retail market, even so, the fact that the market is supported by such organization provides a much higher level of legitimacy than the gambling world. While gambling always faces challenges on the legal front, Forex is as legitimate as any other market, such as stocks or commodities. So, if you are interested in spending your hard-earned money and taking a risk, wouldn't you be better off putting it where you know the law and morals are on your side?
4. Flexibility
The difference between Casino and Forex is that casinos are mostly gambling and Forex games compared to a series of strategic tournaments. Unlike gambling, a Forex trader can decide on models and price analysis to open or close a position and have a chance to win.
Why Forex Trading is not a Gambling
Forex trading is becoming increasingly popular around the world. More and more people register at a forex broker and try to trade. But it's more like testing their luck when they start trading because most new traders actually gamble and don't trade seriously. They open positions due to emotions or feelings lucky and hope that the trade will go in their favor. Obviously forex trading leaves no room for emotions and feelings like that. And there's no doubt that everybody who trades according to feelings will go broke sooner or later.
Imagine yourself as a profitable trader. You wake up, grab a cup of coffee, and sit in front of your computer. You see a nice setup on your favorite currency pair, and you decide to enter. Now you wait. For a couple hours, days, who knows. All you know is you see a set up in line with your rules, and your rules give you about a 70% win rate, so you expect to win. The next day, you see you have won. Or you see you have lost. Regardless, you do the same thing. You wake up, look for entry opportunities, then go about your day.
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