Is Forex Trading Gambling

I think some people have extremely unreasonable expectations for their Forex earnings. If I can make 2 - 5% in a mo. This is actually one of the reasons that commentators use to say that forex is a form gambling. Many of the platforms that enables trading on the markets (for the record, we recommend eToro) with leverages at levels like 500:1. The greater the leverage, the greater the risk, therefore makes forex trading no different to gambling. Trading—with its promise of high income, financial freedom, sometimes frenetic pace, highs, and lows—can become an addiction for some people, just like alcohol or gambling. Forex trading is, in the simplest of terms, currency trading. It is a globally decentralized market where businesses, investors, banks, governments and traders come to exchange currencies. Being the largest and the most liquid market in today’s world, forex trading has reached stupendous levels of popularity, resulting in an average daily. Professional Forex trading is all about habits, and the first step to changing your habits from a gambling trader to those of a pro trader is by determining whether or not you have a problem.

Can a Christian Trade Forex?

Someone argued that in Forex trading, one can only win at the expense of another and hence, it is no difference from gambling and it is unproductive and wrong to do so.

Lets begin with the statement of 'one can only win at the expense of another'

Would you not apply for a job knowing that if you succeed, other applicants will not?
In any competition, there will be winners and there will be losers.

Is forex trading gambling

Moreover, in trading (not gambling), losers lose, not because another trader took from them and winners win, not because they took from a losing trader.
A 'trade' is a business transaction, where the buyer and the seller agree on the value of something exchanged, be it currencies, stocks, bonds, futures contracts, cars or houses etc.
There is no disagreement between the buyer and the seller and there is nothing unethical about trading.

The fact is that the buying and selling of currencies is no difference from the trading of goods which we try to buy at a lower price and sell them off at a higher price to make a profit.

...you make profit a dirty word, Singapore dies...
- The Late Mr Lee Kuan Yew, Founding Father of Modern Singapore

What about 'it is no difference from gambling and it is unproductive and wrong to do so'.

The difference between the Casino and the Forex market is that, most are games of chance in the Casinowhile it isabout economy and a contest of strategy for the Forex market.
Unlike the gambler who has no control of the process and outcome of the game of chance, the trader can rely on price patterns, fundamental and technical analysis to decide on the opening and closing of a position with a probability of winning in his/her favor.

Another good way to differentiate trading from gambling is this:
Imagine playing a game like blackjack and not having to put any money on the table until I have seen the dealer's cards, and then being able to risk as much or as little or even not at all.
Furthermore, if I do decide to proceed, I can change my mind and withdraw my money off the table as long as the opening price that I set for buying or selling (stop or limit order) is not met - THAT'S TRADING!
In addition, I have the ability as a trader to increase my profits (let my profits run) whenever the odds are stacked in my favor and mitigate my losses (cut my losses short) when my decisions are wrong.

Hence, a prudent trader is more like an astute businessman or for that matter anyone who has the seriousness to make and control buying/selling decisions.
All of us have to take some calculated risks in our transactions in order to achieve the potential rewards that we envisaged.

Forex trading is an essential economic activity.

The Forex market facilitates the proper functioning of global trades and market participants including spot traders contribute to the liquidity for the exchanges of currencies.
International business transactions where currencies are required to be swapped will not be possible without the existence of an active FOReign EXchange market.

While Forex trading is a zero sum game where the total gains must equal all the losses, it is also subjective because there are instances where a trader's gain need not arise from the loss of another trader.

For example Trader I bought from Trader U, Singapore dollars and sold the S$ later for a profit after the S$ has appreciated in value.
Similarly, Trader Ucould also profit from the exchange had he bought the S$ at a lower price before he sold it to Trader I for a profit.

Is Forex Trading Basically Gambling

Is it wrong to trade?

A stricter interpretation of the Holy Bible's 8th. Commandment '

Is Forex Trading Gambling In Christianity

You shall not steal' should include activities that cheat or harm to enrich oneself.

Like any other legitimate businesses or professions whose goals are to make a profit for ourselves, trading is definitely not dishonest as we are not out to swindle others and not harmful if we don't treat it like gambling.

It is also unreasonable to approve the trading for profit of traditional goods and services but disapprove the trading of currencies, stocks and properties etc.

In the Parable of the Talents (Matthew 25:14-30; Luke 19:12-28), we are to make good use of our God given abilities/money to achieve a positive return on our investment of time and resources.Failing to do so will incur God's wrath.
While some may interpret Psalm 128:2 You will eat the fruit of your labor; blessings and prosperity will be yours as trading our time for money like those toiling a 9-5 work day, I choose to make good use of my analytical and programming skills to automate my trading as well as for my traders to generate consistent incomes from the Forex market.
Automation increases our productivity and frees up time for us to do things that matter more to us than just hard work!

Why Forex?

Due to its low cost of entry as compared to traditional businesses which require high capital and on-going expenditures, the spot Forex market offers a viable option to the retrenched/retired to learn a valuable skill andmake better use of their money to work for them instead of them working for the money.

Is Forex Trading Gambling Or Not

Some of us who are astutein Forex trading can also choose it as a respectable profession to make a sustainable living out of this $5 trillion a day economic activity.

Is Forex Trading A Gambling

In short, trading is a viable way to grow our wealth. Its goal is similar to investing in properties, stocks etc. or entrusting our money in the hands of fund managers to make better use of our spare cash.

Is Forex Trading Gambling In Islam

Does financial trading serve any useful purpose, or are traders just parasites?
Opinions are split, so we're just quote the 1976 Rosenthal report: 'A basic freedom we have in virtue of living in a capitalistic country is that we are free to speculate on the movement of prices. This freedom does not require an additional justification, such as promoting the interest of commercials. All that is required is that the general public not be harmed and that the market place be organized according to fair rules and procedures.'

Trading

Is Forex Trading Gambling

In conclusion, there is nothing wrong with Forex trading ifwe treat the Forex market like any other market places where opportunities can be seized and risks can be mitigated.
What gives Forex trading a bad connotation is when people treat the Forex market as a casino.

Is Forex Trading Gambling In The Bible

It's also my hope and prayer that through my trading and programming skills, I can be a blessing to others.