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Archive for April, 2015

Confusion in FX

April 19th, 2015 at 07:23 am

I get so many people approaching me and asking whether FX isn't gambling.

So the answer to this is divided into two parts:

- First off, FX means Foreign Exchange. Services that allow you to change your local currency, whether it's USD, GBP, or EUR are called FX services.

These services, like the ones I am mostly writing about, have nothing to do with gambling. They allow people to pay internationally, move abroad, purchase abroad, invest abroad, etc.

Just like banks do. And banks have nothing to do with gambling, don't they?

- The second part relates to FX trading. Forex Trading mostly relates to derivatives online trading. In short, it means you are using FX platforms to leverage you on your predictions. If you think a certain currency pair like the EURUSD is going to change, you can engage in a contract with these companies which will mean whether you earn big, or lose all (or part) of the money invested in that position.

Is this gambling? by regulative authority it is most certainly not, as these activities are supervised by financial regulators like the FCA in the UK.

Is it high risk investment? It most certainly is, but with no risk there's no gain.