Some people claim that trading is a clear gambling, however I can’t agree with such an opinion mainly because they have lots of distinguishing traits in my opinion. Trading is more about strategies, everything depends on your strategy and skills, while gambling is famous for luck. In gambling everything is based on luck, however trading activity doesn’t imply luck at all. Of course, there are some traders who prefer rely on luck in trading, nevertheless it’s a great mistake to my mind. Moreover, gambling is prohibitied in the huge amount of countries, while trading isn’t prohibited because it’s oficially licensed and regulated.
Telling yourself its a casino will reveal just how smaller your success margin is, it illustrates how precise and nimble we really need to be. It will make is focus on our strengths where we can take we can get and leverage that.
To me Forex trading is different from gambling where your trading exercise is based on guess work or imagination. If one strictly relies on a strategy developed or acquired and pay attentions to these strategies instructions and directions with patience and obeying the rules of the game,Forex trading is a business like other businesses with risks,losses and gains. Successes in any trade or enterprise depends on ones knowledge and experience.
Gambling is the wagering something of value (“the stakes”) on an event with an uncertain outcome with the intent of winning something else of value. Gambling thus requires three elements to be present: consideration (an amount wagered), risk (chance), and a prize.
Now shout out to all above, who don’t feel like trading IS gambling 
How exactly trading is not fulfilling the above gambling definition?
Each trade is a game of chances - you wage money (stop loss) on chance (your entry signal) that you will reach Take Profit (prize). furthermore, you cannot even calculate probabilities due to volatile, everchanging market conditions. If you play blackjack, poker or roulette - you know exactly the probabilities. The difference is, that in casino these chances are for sure negative for the player, whereas in trading these can be on players side. Still, this is not a part of gambling definition what is exact risk profile.
In gambling, you are risking something of value (“the stakes”) on an event with an uncertain outcome. In trading, you invest time learning the market and making educated guesses about what will happen next. You can also minimize your risk by using good money management techniques.
When you open a position in forex you have exactly no idea what is the probability of your success. You only know, that you have limited risk and maybe set exit level.
Even with the best education, training, experience - still you don’t know the chances. It’s pure gambling. The fact, that your statistical expectation CAN be in fact positive in forex has nothing to do with definition of gambling. The thing to understand here is that gambling DOES NOT mean you have to lose or be statistically on negative side. Gambling means nothing more than betting money on uncertain event to gain profit. Period.
Reversing the definition to make it logically easier.
Forex would not be gambling IF:
- You knew what will be the outcome (no risk / chance element) AND/OR
- You could not lose anything (no stake element) AND/OR
- You could not gain anything (no profit element)
The answer to this question is, this is the wrong question.
In English we only have one word for both types of gambling. The outcome of a gamble on the first type can be affected by the player’s skills and/or knowledge. Trading is like this. So is all business.
The outcome of the second type of gamble cannot be affected by the player: it is purely random, as in a lottery or roulette. Trading is not at all like this.
What is your source for “two types of gambling”?
As traders it is really hard to admit, that trading is to some extend random.
Poker is great gambling example, it has three elements of gambling definition AND result is affected by players skill and knowledge. Yet, it is still considered as pure gambling.
Whenever you bet money on risk event with hope for profit - this is gambling and what you know and what you can will not remove the probability from the game - you may only move the odds to your favor. But yet, this is not a part of gambling definition.
I think the question is good, but traders psychology makes us think we have great control over market and we don’t gamble We don’t have control, we hope to have positive result at the end of streak and maybe we have historically positive expectancy, but nothing more. You never know, if you will hit stop loss or take profit - no matter how long you study, what experience you have - it does not matter, as there are always cases of stop loss hit. The fact that experienced trader will have higher win rate than beginner does not matter.
My source is my experience.
The original question is bad because the questioner is not specific about which sort of gambling they mean. If they are suggesting that trading might be like an activity whose outcome cannot be affected by skills or knowledge, they are obviously wrong.
The question is, if forex is gambling.
If you don’t have more details you treat the question regarding the broader definition.
By looking at broad definition - forex IS gambling. I see you don’t like this answer and look for more detailed cases to prove it is not
In some legal environments, there are distinctions between “game of chance” and “game of skill” (Australia) but in others there is not (Poland). So to comfort all traders, who feel uneasy to say that they are gamblers - Forex is gambling by broad definition. Forex is also a game of skill, where chance element is less important than skill/knowledge. “Games of skill” is a subset of all gambling games.
The question just reflects a poor level of knowledge of how to define gambling. An activity with an uncertain outcome does not immediately qualify as gambling.
I’m more concerned with what things are rather than how they are perceived.
Definition of gambling defines gambling. Period.
That is true. But, look at definition of gambling - we need to have stake (money), we need to have event of chance (risk) and we need to have potential profit. Activity with uncertain outcome indeed is not gambling.
Based on above dicsussion, forex is perceived as not gambling, but - based on definition - in fact it is gambling
There is nothing wrong to have an opinion, but we need to differentiate our opinions from facts. For me dictionary definition or law definition is source of truth (fact).
You’re saying that forex is gambling. But which sort of gambling? I have suggested there are two distinct types and forex is like one but not at all like the other.
Just to be clear, do you think there is only one type of gambling? Or do you agree there are two types but say that forex is like them both?
Few posts above I’ve answered your exact question.
I say forex is gambling by any of definitions from Macquarie dictionary, Cambridge dictionary, Merriam-Webster, Wikipedia, Polish Scientific Publishers Dictionary.
If you would ask me about type of gambling and by types of gambling understood “game of chance” and “game of skill” depending on dominant impact on result - I would say forex is “game of skill” (still as subset of overall gambling activities)
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Absolutely game of skill and despite all the dictionaries it`s not a gimbling at all.
Definitions exist, so we can agree what something is or is not.
In discussion we should refer to facts, not opinions or feelings
There is nothing wrong in agreeing, that trading is gambling.
It does not diminish your experience, knowledge, results in any way.
“Dog is not mammal at all! Dog is totally different than mammal - it’s canid.”
Its not like which sort of gambling?
The primary distinction is manu gamblers don’t employ money management.
They risk what they have there and then .
I’ve only meet a few gamblers that really delve into Fundamentals the way FX traders do.
That’s not correct. the difference between gambling and trading is the nature of the game and there is nothing the gambler/trader can do to change that. Some gambling games cannot be influenced by skills or knowledge, such as roulette or the lottery. trading is not at all like these forms of gambling because the outcome of a trade can be affected by skills and knowledge - whether the trader employs these or not does not affect the nature of the game.
Never accept the word of a non-trader or unsuccessful trader or a new trader or an ex-trader when they say that trading is gambling.
For many of the market participants, Forex “trading” IS gambling but for me personally, it definitely isn’t. I used to be a chronic gambler and wagering on live sports action made everything even more exciting. With forex, I don’t get that rush and tbh, I find it quite boring but that’s the key to my success. It has become just a job and has been since last November. I still have a bet at a weekend but it NEVER infringes upon my trading. ONE is WORK and ONE is pleasure. I’ve thankfully managed to separate the two, otherwise I’d have been sunk! Good luck all! 