There are plenty of differences between gambling and Forex trading. One of the biggest differences is the fact that the forex market is backed by the biggest financial institutions in the world. While banks tend to be more reliable and trustworthy, retail traders are not. This gives the forex market greater legitimacy than gambling. Gambling has always had its share of legal issues, but the forex market is no exception.
Another big difference between gambling and Forex trading is the way in which the market is operated. There are active market makers, such as DealingDesk and MarketMaker, that act as counterparties to your trading positions. These firms profit when you earn money, and lose when you lose money. This is one of the reasons why many traders assume that trading is little more than disguised gambling.
A trading guide is an essential tool to help you avoid falling into the temptation of gambling with forex. A good guide should be easy to use and adaptable to your trading personality. Otherwise, you’ll end up losing more money than you put in. By following the guide, you’ll learn how to manage your risks and avoid falling victim to forex gambling.
The other important difference between trading forex and gambling is that there’s no such thing as guaranteed success. You’re betting on the price of a particular currency to go up or down. You can use technical analysis to help you identify high probability trading positions. By applying this method, you’ll be able to exploit certain aspects of the trade game and win more money than you lose.
While you’re accepting the risk of unknown odds and a slight house advantage when gambling, Forex traders use strategies that put the odds in their favor. You never know if a trade will be a winner, but you’ll have reason to expect a significant number of profitable trades over the long term.