Hey guys, I was thinking about somethings about the forex market and would like you guys to help me clarify them because I could not answer them on my own . I’ve got this preconceived idea about forex which may sound absurd but here goes- Is it possible for the the forex market to ‘end’ or could it someday become less profitable to many traders? Is forex a closed loop? Is your win always another trader’s loss? Or are there other people who are involved in the forex market but not for profit making? Or is there a way the forex market generates its money for traders? In summary, where does the money in forex come from? THANKS
What is the reason for your concern about forex ending? Will it affect your ability to meet your financial obligations?
No not really, it’s just that I was wondering of any possibility of that happening… Out of curiosity and due to the fact that there are full time traders
Forex is not much different from casino except in forex there are many many houses.
If 2 traders have opposite positions with a bank, the bank will prefer to make the guy with the big position the looser and the guy with the small position the winner.
I think your question is legitimate. My feeling is that any business/industry is subject to various risks.
For example, what if the government decided that FX trading for private citizens was too risky, and it decided that in order to trade FX you need to meet the “sophisticated investor” classification, having an over 2M net worth, etc? Okay, so you’d work with a foreign broker. But what if the federal government decided that FX trading was the same exact thing as gambling, and made it illegal in all states where gambling was illegal? That means legally you can’t log in to off-shore brokerages and trade, just as you can’t legally log into online casinos. The feds work with ISP’s to block access to foreign brokerages, there are a few high profile examples made of some traders who get busted logging into a foreign brokerage, etc.
Okay, so you figure you’d move to futures. But then the government decides the same problem exists with the futures market, too much leverage, too much risk - its gambling, or have a 2M net worth. So what’s left? Stocks, options.
So the government decides that the world is a better place if we protect people from using the stock market as a speculative instrument. No margin accounts allowed for anyone who has an under 2M net worth, no short selling, no short ETFs, no leveraged ETFs, and pattern day trader rules are made even stricter.
Voila, you have an effective end to the business of trading as we know it. This might sound like its unlikely, but believe it or not FINRA wanted to reduce FX leverage to 1.6:1 (that’s no misprint) not too long ago. That would have put most FX traders out of business, unless they had an account north of 6 figures. Now the CTFC is pushing for 10:1 leverage. That’s not suicidal, but it sets a very bad tone.
All it takes is another Mark Barton case, or some loon who mortgages his house to trade, then loses it all and sets himself on fire, etc., and politicians will be looking for another law to write and pass to make them look like big heroes. Retail traders as a collective group are quite a minority of the voting population, and the big institutions that meet the “sophisticated” category will be glad to have the little guys who profit from their moves off their backs. That means you really don’t have much of a case to be made in public, after all you’re less relevant to them than the milk man. You won’t see major rock stars wearing T-shirts reading “Just say NO to the Forex Ban”, so politically you’ll be overwhelmed.
So is it possible for trading to cease to be a viable way of making a living? Yes, theoretically that could happen. You have two choices at that point I’d say, either move to another country, or try to get a job with an institutional firm.
The end of forex trading is called single world currency called for by China and Russia and even backed by the US treasury.
It is unlikely to become a reality in the near future due to the enormity of implementing such a thing but I believe it is only a matter of time …
Huh, where did you get this information from??
I have always believed that forex trading as such will come to an end.
For better or worse.
We are heading for a new world order to come under a one world government.
A one world currency will become part of this.
This one world currency will be based on the carbon energy standard - hence the climate change hoax, necessary to bring this whole thing about.
It will be cashless, operated thro RFID type chips in the right hand or forehead.
At present the technology in this area has still some way to go.
My belief is simply based on Bible prophecy.
The one world government will come under the antichrist.
I much doubt about one world currency or one world government, DOLLAR and USA is a perfect example, all countries used to have their reserve in the DOLLAR until it went almost BUST.
Many European countries are wanting to dump the Euro.
There is no single dominating country that could dominate the world, we have USA, Russia, China, Europe, why would any 3 want to obey 1 ?
Forex used to be exclusive to banks and big investors, why did they start accepting retail traders ? because they want money.
It was something talked about a lot last year here’s a few links you’ll probably find the third one very interesting
FOXNews.com - China Takes Aim at Dollar, Urges New Global Currency
Thanks for the links. I’ll check em out later
And today everyon’e talking about the EUR falling apart :rolleyes:
I think there will be some major world war during or before this happens
So should we all switch from currencies and start investing on gold and guns?
Yes, this could well be true.
The Scriptures refer to a major war in Ezekiel, that being against Israel.
Maybe something to do with Iran.
We will just have to wait and see how things pan out. 
No, stay with currencies while the opportunity is there!!
If Nostradamus was alive today just imagine how good he’d be at trading!
I don’t think he would have a clue!! 
You would have to teach him how to use a computer first!!
Apocalyptic scenarios aside, it would be interesting to wonder how traders would make a living if their access to markets was entirely removed. Outside of professional poker, I wonder to where these skills would be transferable. I imagine the fundamentally oriented ones would do much better than the tech based ones…
Actually part of my interest in FX [B]is[/B] to get money to buy more guns and a compound and maybe a new name…