A gamble can be described as an intended outcome or decision for anything in the future. By that definition everybody gambles everyday (unless they are brain dead) but it is the recognition of knowing the financial repercussions of the decisions that cannot be controlled, and or that are very much un-correlated to you is as a bet or wager. Financial trading is a wager and what you intend to do with the trade is a gamble. However, financial instruments provide much more control like stop losses which few sports betting or other regular bets, casinoās cannot provide usually. Even the lions in Africa gamble on which animals to select as prey, like a trader select futures, stocks or Forex pairs, if the lion gambles to take down an elephant it could die in the process, if it selects a little deer it could eat lunch, and if it takes a naps which is doing nothing essentially a no gamble will result in death from starvation -only thing that is certain is that it must do gamble or die from starvation. In the jungle the lion must gamble because the lion cannot trade with the bear for strawberries on the local jungle commodity exchange. And thatās the difference between trading and gambling. PS You are NOt a lion in Africa, you are a human, you can get food stamps and trade them
You nailed it. At its core, forex trading or any form of financial speculation is a form of gambling
its speculative
ITās quite different from gambling because itās still have itās strategies and some solutions how currency will work out. With gambling you simply play one set game with random rules and very limited set of players where all scams is possible;)
Absolutely. Gambling is based on random behavipus only, wheras trading includes real conditiong operands on the markets. Thatās a completely different story.
gambling is betting and leaving only chance . Trading you trade with more information. Result can seem same though.
You obviously donāt understand gambling.
You obviously donāt understand gambling.
FMā¦ Forex is as close to Gambling asā¦ wellā¦ Gamblingā¦ Why is that??
When you Buy a share in a listed company on a stock exchange anywhere on the planetā¦ you are actually purchasing somethingā¦ a percentage of ownership in that enterpriseā¦ you become a shareholderā¦ so although itās of a risk nature (value can decrease) youāre still classified as an INVESTORā¦ because you have something of tangible value that you can Sellā¦ for a profit or a lossā¦
Crab Racingā¦ picture a table and four large crabs behind a line on one end of that tableā¦ You are going to place a wagerā¦ letās call it a Bet on which Crab will shuffle to the other end of the table firstā¦ so you place your bet on Crab A to be over the line before Crab B,C and Dā¦ You donāt own Crab A or any part thereofā¦ only itās ability to get across the line firstā¦ so, in essence you have nothing of tangible value to trade (Buy or Sell)ā¦ If Crab A gets there first you will profit from your Betā¦ and if it doesnāt you lose your Betā¦ you make a lossā¦ This is Gamblingā¦
Nowā¦ for some of the delusional in this forumā¦ Forex via CFDās is exactly the same as a Crab Raceā¦ You are only going to profit if the price of pair A gets over a set line on a Chartā¦ you donāt own the currencyā¦ you have nothing of tangible value to Sellā¦ So, youāre not an INVESTOR are you?
You are only wagering (Betting) whether price moves up or price moves downā¦ the Crab walks backwards and falls of the table (SL) or Crab makes a dash for the other end of the table (TP).
You can call it Binaries, Spread Betting (waitā¦ what??) Forex, Trading or Speculating on Currencies, indexes and materials via leveraged CFDāsā¦ call it what you will to appease the notion youāre not actually Gamblingā¦
So, now you really want to truly Invest in Currencies?.. walk into a Travelex anywhere in the world and convert your cash in to say USDāsā¦ and wait for it to increase (or decrease) in value and return and convert it back into your currency for a profit, after the ~3% fee to Buy and the ~3% (and fees) to convert it back again (Banks arenāt going to let you in on their scam for freeā¦).
You actually had something of tangible value to Sellā¦ US Dollarsā¦ True Currency Investmentā¦
Now, I did a quick search across the Internet (Google) to find a definitive answer on whether Forex is really Gambling and nothing but advert after advert from Educators and Brokers and pages and pages about how itās nothing like Gamblingā¦ you guessed it fromā¦ Educators and Brokersā¦ in the top resultsā¦ then I found this off message article from an FX Education siteā¦
Youāre only taking a punt / wager / bet on whether your chosen Instrument is going up or down
Anybody would think that gambling was a dirty word around here.
Masses do compare forex trading with gambling, however, I find it quite baseless. These two are totally different. The amount that people put into gambling per year is nowhere near to what is traded in forex per day. So yes, there is a huge difference of numbers. Also, the forex market is supported by financial institutions and is as legitimate as the other type of markets. However, gambling is illegal in any form and isnāt approved by any institution or authority. Various strategies and ways are available to deal in forex trading but gambling offers no such set of strategies. It is an addiction based only on oneās luck.
Strategies are available in gambling too. Gambling may be illegal where you live but that doesnāt mean its illegal everywhere, it just shows how little knowledge you have of gambling.
The best way to understand the difference in these two is to analyse them in their simplest forms. Forex trading in itās simplest form at the Forex Bureau involves a mere exchange of one currency for another. The āspreadā is the profit the Forex Bureau earns by providing this service. Difference with online Forex trading and the one at the Forex Bureau is that compared to a Forex broker, the Bureau doesāt change their āSpreadā as often and as much as the broker. However in both cases, one makes/loses money off the difference in value of currencies with respect to time. In itās simplest form, I donāt see Forex trading as gambling. However, as the trading units increase, thereās need for more complex methods (read trading systems ) to minimise on losses and maximise profits, just like in any other business.
We are not engaged in exchanging currencies for currencies at this Forex Bureau thing. We are betting on the movements in the exchange rates between pairs of currencies. If the bet is correct we win, if it is not we lose.
No need to pussy-foot - we are gambling. But we are not guessing. Neither are the more selective gamblers - they avoid the lottery and roulette etc as these are games of pure chance and no application of skills, knowledge or experience is physically possible.
Many people are morally or religiously averse to gambling. If you are serious about the beliefs that form your faith, stop forex trading.
I totally concurā¦ the other anomaly that entrants fresh into the Forex Markets are normally totally unaware of and puts Forex (CFDās) closer to the gambling fraternity is the fact that nearly all retail traders are trading in the OTC marketsā¦ a made up price feed that closely resembles the true interbank marketā¦ Now if we were all accessing the Market directly as opposed to via a Market Maker structure that is required to trade retail, then this might be a whole different conversationā¦
I read somewhere (could dig it up if I had too) a year or so ago that to Broker Forex to retail clients one of the many licences that has to obtained is the same as all online gaming operationsā¦ thatās rightā¦ Casinos, Pokies, Keno, Poker whateverā¦ so itās not to far removed from itās nasty counterpartā¦
DYOR
Unless you define gambling as a wager on something with probability close to 50/50 chance, forex trading is no different from GAMBLING. A wager in forex is akin to taking a calculated risk base on an illusive methodology, the chance of a correct bet can varies widely with different individuals and is never close to 50/50 odds. Anyone who thinks gambling is immoral or wrong should never venture into forex trading.
Trading is gambling but its not a lottery.
Could you please enlighten us?
There are two types of gambling.
The pure gamble is a game such as the lottery or roulette. The player cannot use any skills or knowledge to affect the probability of a successful outcome, only its size. So in a lottery you can buy 1 ticket or 1000 tickets but you cannot use any knowledge to select any ticket which has a better probability than any other ticket of winning. This is very different to trading.
Other types of gambling also have cash prizes but the playerās skills and knowledge do affect the outcome. Those with more knowledge of horse racing tend to win more than novices. Better poker players win more than new players. They are able to use their skills and knowledge to give a better probability of them winning.
This is similar to trading. Better traders have greater skills and knowledge than new traders and tend to make more profits. They can still lose money and it is a matter of luck whether some trades are winners or losers, but this is business, not pure gambling, and the success of the business is based on skills and knowledge, not random good luck.