Forex Trading and How It Relates To Online Casinos
Forex (FX) Trading has been used as a source of income for many decades and still continues to be among the most preferred money making avenues. Foreign exchange trading entails buying and selling of currencies and cash instruments with the intention of making a profit margin. Modern day foreign exchange trading has become more sophisticated and involves more trading instruments as compared to the conventional “Forex Trading“; this is attributed to the dynamism and versatility of the market economy and also the discovery of new financial instruments. Trading in foreign exchange is becoming more of an online activity as opposed to the traditional setting consequently covering a wide market area, it is possible to trade from any part of the globe on a 24/7 basis with minimal hindrances.
Best Forex Trading Sites
There are many types of foreign exchange trading and each form comes with its pros and cons, conversely, the goal is always to maximise profit and minimise losses. The trade involves exchanging the currencies from different regions and hoping to make a gain in the process. Forex Trading takes place in different ways, for instance, a trader may decide to buy and sell the same currency or swap one currency for another Ex: United States Dollar (USD) for the Pound (£), Euro (€) or the Japanese Yen (¥) among other currencies. The trader makes a margin by selling or exchanging the currency which was earlier bought at a lower price.
Forex Trading is a speculative trade which is largely determined by the economic parameters such as the economic policy, fiscal policy, monetary policy, government intervention and world prices among other market variables. This makes the trade dependent on probability and chances thus making it a high risk and high return with no safe middle ground, therefore a trader either makes a gain or loss. For instance, a trader speculating that the value of a currency is going to increase in future will buy more currency hoping to sell at a higher price and if the trader speculates the value is going to decline, he either holds on to the currency or immediately disposes of all the currency. In case the predictions are wrong, he will lose either way but if accurate he stands to gain.
“Forex Trading” and “Online Casinos Gambling” carry many similarities related to online money transactions. The resemblance factors include the following:
Probability: The final outcome of the transaction is pegged on a probability thus there is no guarantee of either making or losing money. The situation may change in a matter of seconds thus throwing the trader off track.
Intangible assets: The trade is concerned with the value and not a tangible asset, for instance, a trader will exchange currencies without having the physical cash just like when playing a game in the online casino.
Online Trading: Forex Trading and casinos are becoming purely online in contrast to a few decades ago whereby the gaming took place in a physical location while the foreign exchange took place in a stock exchange market or a forex bureau.
Win or Loss: Gambling and Forex Trading have no safety net available during the trade, therefore, you either loose or gain 100% and the higher the chances of winning the same chance of also losing.
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