Is Forex a form of gambling? Many people are not sure about the practice of Forex trading. This time my Finance will discuss in depth about forex trading which is considered gambling.
Forex Trading vs. Gambling
Forex is an investment instrument that is often used by investors. In practice forex is traded with a trading system. “candlestick”
Forex market conditions are very volatile. Every second can occur whether significant or not. This fluctuation provides a great opportunity for traders to trade and buy.
Because of high market fluctuations, many people question whether forex is a form of gambling or not.
To answer this question, let's look at what the definition of gambling really is according to the KBBI:
While the definition of forex trading is the activity of selling and buying currencies that are carried out continuously for profit.
Let's discuss gambling first. As mentioned above, gambling is based on chance or luck.
If a gambler gets a victory then it depends entirely on luck.
This is why many gamblers who were rich can go bankrupt suddenly. The whole 'game' is run on luck and guessing.
If you are lucky, gamblers can get huge profits, but if they are not lucky, the losses can be huge too.
What about forex? There are several things you need to know about forex trading before assessing whether forex trading is a form of gambling or not:
# 1 Traders Sell and Buy
In the forex trading process, traders buy and sell. There are no betting activities in forex transactions. A trader does not risk anything with other traders or brokers.” moving avaredge”
Price movements that occur in the forex market are influenced by many things with very broad coverage.
The main factors that influence are supply and demand for a currency, besides that there are also economic, political and other factors.
These factors cover conditions around the world so it's not based on guessing guesses.
# 2 Brokers Always Benefit Every Transaction
Many perceptions assume that in forex trading, brokers benefit from traders who 'gamble'. In reality there is no term win or lose in forex trading.
Assume you assume that if you get a profit from the difference between the selling and buying price of a currency that is owned is a temporary victory if the loss is considered a defeat.
The thing referred to as victory or defeat does not have any influence on the broker. Brokers benefit from every transaction that a trader makes, both selling and buying transactions.” Fibonnaci”
If a trader sells his money at a price lower than the purchase price (loss), the broker will still benefit from the seller's transaction. Therefore the assumption that traders gamble with brokers is not right.
# 3 Predictable Market Conditions
As mentioned in the first point, price movements in the forex market are influenced by many factors that cover conditions throughout the world.
This is because every currency must be related to other currencies. In addition to supply and demand factors, other factors such as economic, social and political can also affect prices on the forex market.
There is a rational reason for price movements in the forex market, therefore market conditions can be predicted.
Market conditions at the end of the day or the end of the period can be predicted using fundamental analysis and technical analysis. If a trader is able to analyze well then market conditions will be increasingly controlled.
This analysis is based on rational factors, so there is no element of guessing guessing or relying on luck for a real trader.” stock market”
Why are Forex Trading considered gambling?
So, based on the 3 important points above it is clear that forex trading is not gambling. But that does not mean forex transactions cannot be used as gambling.
It's just that this often happens not because of the mechanism that exists in the forex market, but because of the gamblers' own actions.
If someone trades forex on the basis of guessing guessing and relying on luck, then he is gambling.
But if someone is a real forex trader, every decision to sell and buy is done on the basis of rational analysis. So it is not appropriate if the trader is considered doing gambling.” forex trading”
Actually any object can be used as a gambling tool, but it depends on the person who uses it.
Is Forex a form of gambling? Many people are not sure about the practice of Forex trading. This time my Finance will discuss in depth about forex trading which is considered gambling.
Forex Trading vs. Gambling
Forex is an investment instrument that is often used by investors. In practice forex is traded with a trading system. “candlestick”
Forex market conditions are very volatile. Every second can occur whether significant or not. This fluctuation provides a great opportunity for traders to trade and buy.
Because of high market fluctuations, many people question whether forex is a form of gambling or not.
To answer this question, let's look at what the definition of gambling really is according to the KBBI:
While the definition of forex trading is the activity of selling and buying currencies that are carried out continuously for profit.
Let's discuss gambling first. As mentioned above, gambling is based on chance or luck.
If a gambler gets a victory then it depends entirely on luck.
This is why many gamblers who were rich can go bankrupt suddenly. The whole 'game' is run on luck and guessing.
If you are lucky, gamblers can get huge profits, but if they are not lucky, the losses can be huge too.
What about forex? There are several things you need to know about forex trading before assessing whether forex trading is a form of gambling or not:
# 1 Traders Sell and Buy
In the forex trading process, traders buy and sell. There are no betting activities in forex transactions. A trader does not risk anything with other traders or brokers.” moving avaredge”
Price movements that occur in the forex market are influenced by many things with very broad coverage.
The main factors that influence are supply and demand for a currency, besides that there are also economic, political and other factors.
These factors cover conditions around the world so it's not based on guessing guesses.
# 2 Brokers Always Benefit Every Transaction
Many perceptions assume that in forex trading, brokers benefit from traders who 'gamble'. In reality there is no term win or lose in forex trading.
Assume you assume that if you get a profit from the difference between the selling and buying price of a currency that is owned is a temporary victory if the loss is considered a defeat.
The thing referred to as victory or defeat does not have any influence on the broker. Brokers benefit from every transaction that a trader makes, both selling and buying transactions.” Fibonnaci”
If a trader sells his money at a price lower than the purchase price (loss), the broker will still benefit from the seller's transaction. Therefore the assumption that traders gamble with brokers is not right.
# 3 Predictable Market Conditions
As mentioned in the first point, price movements in the forex market are influenced by many factors that cover conditions throughout the world.
This is because every currency must be related to other currencies. In addition to supply and demand factors, other factors such as economic, social and political can also affect prices on the forex market.
There is a rational reason for price movements in the forex market, therefore market conditions can be predicted.
Market conditions at the end of the day or the end of the period can be predicted using fundamental analysis and technical analysis. If a trader is able to analyze well then market conditions will be increasingly controlled.
This analysis is based on rational factors, so there is no element of guessing guessing or relying on luck for a real trader.” stock market”
Why are Forex Trading considered gambling?
So, based on the 3 important points above it is clear that forex trading is not gambling. But that does not mean forex transactions cannot be used as gambling.
It's just that this often happens not because of the mechanism that exists in the forex market, but because of the gamblers' own actions.
If someone trades forex on the basis of guessing guessing and relying on luck, then he is gambling.
But if someone is a real forex trader, every decision to sell and buy is done on the basis of rational analysis. So it is not appropriate if the trader is considered doing gambling.” forex trading”
Actually any object can be used as a gambling tool, but it depends on the person who uses it.
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