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Introduction
Many people, especially beginners in forex, fall under the question of forex trading vs sports betting, which is better? Are they similar? Is forex trading a gamble? What is the difference between betting vs trading?
While for most forex starters this is high on the list, given that no one is ready to gamble with their money in forex, sports betting fans don’t seem to really mind the gambling aspect of it, from what I have observed.
But wait, is forex trading just gambling? This article will help you tell if forex trading and sports betting are one and the same thing. Strap in, this may shock you!
Forex Trading is it Gambling?
Is there a difference between betting vs trading?
Forex trading is a form of investment in which people buy or sell currencies at current rates. A lot of people who must work abroad find forex trading an ideal way to make extra income from the comfort of their homes.
By the same token, you can be trading for hours without expecting any results, and then some trades will change your life. What makes it even more interesting is that it comes with its set of challenges that will definitely bring you down at first but act as your pillars later on.
It works using specific platforms and brokers that you sign on to their accounts with. You are then given a platform where you conduct all your trades with the profit having been measured in Pip.
Benefits and Risks of Forex Trading
Benefits of Forex Trading
a) The first is capital gains. By forex trading, you have the chance of making more money than any other form of investment due to the high price movements of Forex. In general, it is not uncommon to achieve an ROI (return on investment) above 2% in a day.
b) The cost of trading is lower
c) It works on a 24/5 market with various trading sessions opening and closing
d) With the right education, your chances of making a profit are increased immensely
e) You can manage your risks
Risks of Forex Trading
a) The risk involved is so high that it can lead to bankruptcy for investors who do not measure their trades well and those with little experience in this type of business.
b) Uncontrollable market risks as the changes in the market are affected by various things.
Want to Start Trading? Here is our List of Recommended Forex Brokers
What is Sports Betting?
Sports betting considered a part of the gambling industry is a service that allows individuals to place a bet on some event. It is done through the help of an online betting site.
When it comes to sports gambling, there are many different types available for you to choose from depending on your preference and location.
If a bet that you have placed wins, then you are paid. The pay is determined by the odds of your team winning. This also means that if the bet loses, you will not be getting any money. The bets are submitted before a certain deadline, usually the end of the game.
Benefits and Risks of Sports Betting
Benefits of Sports Betting
a) It is considered legal
b) It’s easy to engage in
c) It’s entertaining.
d) It enables you to have control over your money i.e., no one can force you to spend it on something that you do not want.
Risks of Sports Betting
a) There is the possibility of losing your money, which occurs when bets are lost or canceled during the match period time by the bookmakers.
b) You may also lose some profits in case there are suspicions about a game being fixed or biased.
c) Another risk is being exposed and getting sued for any financial crimes committed while paying for gambling
Comparison Between Forex Trading and Sports Betting
[table id=28 /]Forex trading and sports betting do share a couple of things that make people think that they are both gamblings. However, when examined closely, one can see that they are not the same.
1. Deals Making
One major difference is that trading involves making deals with a merchant. Thus, you are in full possession of your money. With Sports betting, on the other hand, you give your money to others under agreements and conditions laid down by them. As such it is possible for you to win but also lose your money even before you have won any bet.
2. Risk Management
Every time you engage in sports betting, it’s a gambling situation that gives you a 50-50 chance that you can win or lose. Forex trading gives you the chance to predict the market and spread out your risks, that even with a few losses, you can make a major win.
3. Leniency
Sport betting sites are very lenient with their customers. You can choose the stake you place and everything but the odds of the game. Forex trading comes with a lot of restrictions placed on traders.
4. Scalability
In sports betting, the scalability is poor compared to forex trading. The possible bets you can place are very limited and it is not scalable. In forex trading, scalability is unlimited. You can trade any currency of your choice at an exchange platform of your choice with varying timescales from 1 second up to weeks/months.
What Do Experts Say About the Two?
Wondering what an expert’s opinion on forex trading vs sports betting is? Many money-making experts with years of experience will tell you that forex trading is a lot more stable compared to sports betting.
Sports betting in itself is risky because not every game goes as planned and only a select few win bets which can be very discouraging especially for inexperienced players.
You also need immense knowledge about what you are doing when it comes to sports betting; otherwise, you could lose your entire stake in just one bad bet! On the other hand, forex trading is all about mastering the technical aspects of price action using indicators, reading charts, and becoming familiar with candlesticks patterns so you can make quality decisions on whether or not to trade a currency pair.
Your Take; Which is Better for You?
So is forex the same as gambling? Forex trading is a great option for people who want to make the most of their money and develop an additional income stream. It may be profitable especially if you know what you are doing when it comes to price action and how to use indicators when reading charts.
On the other hand, when it comes to forex vs betting, consider that there are people who have been able to turn into millionaires by sports betting. Forex trading is easier but if you have a knack for determining the winning teams, you can make some really good money. It’s all you from here!
