In the case of gambling, on the other hand, the casinos always tend to have an edge over the gambler. Thus, for a trader to become successful, he/she has to analyze the market, predict the price behavior and then take trading decisions accordingly.
The price movement in the Forex market is based on economic laws such as supply and demand, and are not random. This concept is largely absent in the case of gambling. In Forex trading, a trader can never lose more than what they have in their trading account, no matter what decisions they make. While there certainly are some similarities, Forex trading differs from gambling in the following ways. Gambling, on the other hand, involves a large degree of luck. The sheer size of the forex market may appear intimidating to many, causing them to take many hasty and wrong decisions.ĭifferences between Gambling and Forex TradingĪ trader requires a definite degree of skill, knowledge and experience to execute profitable trades that could lead to consistent profit generation. While no one can deny the rate of failure in the forex market, the reasons behind it can be many folds.Ĭommon mistake novice traders make when they enter the forex market is to have a gambling mindset.
They point to the high rate of failure in the forex market as a major proof of their claim. The opinion that forex trading is a form of gambling mainly comes from outsiders as well as a section of unsuccessful traders.
