- The question of whether forex trading is comparable to gambling has been an ongoing debate. For some people, forex trading is defined as a legitimate form of trading and investment.

However, the forex market presents a level of risk that cannot be ignored, so before you decide to enter the world of trading it is your primary duty to fully engage yourself in thorough education and understanding.

Forex trading is not gambling.

Foreign exchange trading is the exchange of money on international markets. A forex trader does not aim to make a profit without the need for expertise or analysis. It is not surprising that many billionaires are made from traders these days, especially if they trade on the HSB investment platform, which is known to have the highest level of integrity in this industry. In addition, forex trading involves a deep understanding of the market, analysis of economic and financial data, and sound trading strategies.

Here are the reasons why forex trading is not a gamble.

1. Analysis and knowledge

In forex trading, a trader must use proper analysis to make investment decisions. This analysis involves understanding the fundamental and technical factors that influence currency price movements. A trader should be knowledgeable about economic news, government policies and international events that may affect the market.

2. Regulation and control

The forex market is regulated by regulatory bodies and financial authorities in various countries including BAPPEBTI in Indonesia. This regulation aims to ensure fair and transparent business practices. Legitimate forex brokers must abide by strict rules to run their business. This includes separating client funds from brokerage operating funds to protect client investments.

3. Use of tools and techniques

Forex traders use different tools and strategies to make better trading decisions. This includes technical and fundamental analysis as well as risk management such as the use of stop-loss orders. All this is designed to help traders better manage risk and increase profit potential.

4. Long-term investment

For many forex traders, this activity is a form of long-term investment. They have the knowledge and skills to consistently profit from the market. This is different from gambling, which often focuses on quick results without long-term planning.

An example of playing Forex Trading.  (special)
An example of playing Forex trading. (special)

Reasons why Forex trading is often considered similar to gambling

Foreign trade is a difficult task that requires knowledge, skills and strategies to be successful. However, unfortunately, many people do not take business seriously and end up considering it as gambling. Here are some reasons why forex trading is often considered similar to gambling.

1. Betting on price movements

In forex trading, some traders place bets on currency price movements. They try to predict the direction of future price movements. It resembles the betting movement in gambling where one places a bet on a random outcome.

2. Dependence on luck

Some forex traders tend to rely on luck to determine their trading success, similar to what happens in gambling. Without a solid analytical foundation they can position themselves and hope to get lucky.

3. Emotional influence

Traders in forex are often influenced by emotions such as greed and fear. This leads to impulsive and irrational decision-making, such as the behavior of gamblers who are sometimes influenced by emotion rather than logic.

4. No profit guarantee

As in gambling, there is no guarantee of profit in forex trading. Although traders can use strong analysis and strategies, they still need to be prepared to deal with losses. No one can guarantee positive results every time.

5. Trading without a plan

Some traders trade without a clear plan or thorough analysis. They can easily rely on their own hopes and instincts, which is similar to the behavior seen in gambling.

However, it is important to remember that forex trading should not be considered gambling if it is done seriously and based on good analysis. A prudent trader uses appropriate technical and fundamental analysis to make rational trading decisions and effectively manage risk. Therefore, it is important to avoid the view that forex trading is like gambling, instead treat this activity as a serious business.

The difference between Forex trading and gambling

The forex market is an area that is often debated as to whether it is too similar to trading or gambling. In this article, we will explain the basic difference between forex trading and gambling to help you better understand these two activities.

1. Buy and sell transactions only by chance

Foreign exchange involves the buying and selling of foreign currencies in organized financial markets. The main goal is to profit from currency exchange rate fluctuations. These transactions are done through in-depth analysis, strategy and market understanding.

Meanwhile, gambling relies solely on luck. No deep analysis or strategy is used in gambling; Profit or loss is based on random results or chance. Therefore, although forex trading is a legitimate business, gambling often relies only on luck.

2. The ability to predict the market

Forex traders have the ability to predict market movements using technical and fundamental analysis. They use price charts, technical indicators and economic conditions to plan and analyze future price movements. With the right strategy, traders can control risks and increase profit opportunities.

On the other hand, in gambling, no analysis is done. Decisions are based solely on luck without considering other factors that may influence the outcome. Therefore, forex trading requires more in-depth knowledge and skills than gambling.

3. The role of broker

In forex trading, brokers act as intermediaries between traders and the market. They facilitate transactions by charging a spread (the difference between the purchase and sale price) or a commission. This is the main way in which the broker makes a profit from every trade the trader makes.

However, in gambling, there is no broker involved in the transaction. Profits in gambling usually come at the expense of other players. So the role of brokers in forex trading is more like trading than gambling.

The fundamental difference between forex trading and gambling is that forex trading involves in-depth analysis, strategy and market understanding, while gambling is purely based on luck.

With strict regulations and the role of brokers, forex trading is considered a legitimate business activity. Although both involve risks, forex trading provides an opportunity to manage risks and increase knowledge of financial markets.

Want to trade forex online? HSB Investment is the right choice. HSBC Investments, a futures brokerage firm that offers you the opportunity to explore more than 45 products by trading global financial markets. This is an excellent opportunity to grow your portfolio and find valuable profit opportunities.