As one of my favorite film characters once said when asked if poker was a game of chance .... Well... not the way I play with it. - W.C. Fields
As one of my favorite film characters once said when asked if poker was a game of chance .... Well... not the way I play with it. - W.C. Fields
Hmmmm interesting approach. Not certain if I agree. . .wow, Lighty's in a debative mood now....for a shiftOriginally Posted by ;
You see, from what you're saying, if a gambler (poker, blackjack, blackjack, whatever) knows what they are doing, it's no longer betting. And yet, some people know how to gamble better compared to many others. In fact, there are professional gamblers out there who make their fortunes on games of chance. So really, is it merely a question of understanding versus ignorance?
Excuse me, this definition isn't a precise one. . .If you think about a corn trader for cases, somebody who buys corn re-sells it or exports it to a different country by way of instance, his business in buying re-selling corn involves risk hazardous uncertainty, because he's at risk due to fluctuating prices due to fluctuations in suplply demand. . .Also he's at risk due to several factors like shipping prices that might change, taxes a lot of other facets. . .Does this mean this guy is gambling??? Of course not, it is his business to take risk in return for an expected profits...Originally Posted by ;
In my view, the actual definition of gambling is to take risks in hopes of yield based on opportunity at the identical time don't create anything real in go back to your risk. . .For instance, the corn trader is currently taking risks to achieve yields but on the other hand, he's adding some thing economically. . .In flip side, He's doing something good into the economy, this Isn't gambling....Guys at a Casino take risks for nothing, they add nothing to the economy this is pure gambling...
Thanks,
Nader
I'm not a banker. . .but imo...Originally Posted by ;
Because you don't possess the Other side of the Ledger to balance hedge it. In case you were as well as trading FX accepting Deposits Lending and from to other people with a Spread in the Interest You Paid or Charged, it'd be Simple to claim that you make massive Gains Trading Currencies.
Lend a Client $500,000.00 @ 9%
Buy $500,000.00 on FX to cover the Loan.
If the Falls, it's still true that you have your 9% diff as a cusion.
If it Rises, you win both ways.
Require a Customers $500,000.00 Deposit and Pay him 4 percent
spend $500,000.00 on FX since you have to have a part of your Deposits on hand working.
Thes examples are obviously very basic, and to say the least, a pitance into the actual numbers involved but I hope you now have a little clearer image.
(Deposits On Hand - Loans Outstanding) - Gov Guarantee % = Margin Acct...
This equation, of course could be way more complex to include assets/liabilities gold etc.. Held by the Bank
Mate,Originally Posted by ;
The definition came straight out of a dictionary. And I DID say it depends how you set it in the first place, did not I?
Currently, to your corn-trader example....The corn trader buys a commodity at wholesale prices and knows almost for certain that the re-sale (I had been going to state retail but you're talking higher degree I believe) price he will charge for it will be higher than his price. He is marking up on his price and earning money like that. Yes, there's demand and supply and surely corn prices do fluctuate. Taxes change. And of course, ships sink, insurance companies go broke, and sometimes authorities refuse to underwrite their clients' losses (I figure). Yup, the corntrader is definitely engaging in an activity that is frought with risk and uncertainty.
Currently, by contrast, Foreign Exchange is the prime example of a bona fide business acitvity. No gaming, no risk taking. Just pure business....
Now, seriously....
We operate in a SPOT market in which you don't even have to establish the prices you're going to charge. You have no say in it. It is a spot rate, you simply take it or you leave it. We're speculating about the future value of a currency against the future value of another currency (usually according to their past actions), using a leveraged account. And what's more, with absolutely no intention of ever actually getting the currency we're buying (since we don't actually NEED it) and never parting with the one we're selling (since we don't actually HAVE IT). Round trip trade....Come on, there are a number of very good techniques for semi-accurate predictions of the market which united with a carefully planned currency management egy can be helpful. But let's not forget that all we're doing is BETTING about exactly what course a currency pair will take at some point later on.
As for contributing to economy....Our donation to the economy is only slightly more than that of a typical casino gambler. Significantly, we pay taxes (well we SHOULD pay taxes). Of course, professional gamblers do.
Do we take risks for nothing? This depends on the egy we use. I'd say most people do. This is obviously reflected in the Foreign Exchange success rates. I don't know where the figure of 90% comes from (referring of course to the frequent knowledge thingy about 90% of traders blowing off their accounts). I don't know where the 10% stems from (referring to the frequent knowledge thingy about 10% of traders going bankrupt). But those are figures which go about and seem to be approved by most traders.
And confront it (and this is the most important point), even if you believe you are capable of Foreign Exchange, how a lot of people must fail? After all, every red penny you earn out of the market is a red cent someone else has lost. That is a little bit different to the typical corn trader who sells a commodity, supplies a service to your neighborhood, gets compensated for his work, and everybody goes home happy (except for the corn, mercilessly slaughtered for our benefit). Our job is to take someone else's money and give them nothing in return. Or rather to give your money to someone and get nothing in return.
And last but not least, the guys we entrust our hard-earned money to are called BROKERS.
Need I say more?
L
First of all... you can find a lot of banks out there that shed alot of currency trading forex. Many of the ones who do earn money do this because they rip off their clients when fulfilling their orders. On million dollar trades I've seen banks charging their clients half a cent. Discuss easy money... :--RRB-Originally Posted by ;
Anyhow, trading forex can certainly be egorized as gambling. However, what in life isn't gambling?
BIN-GO!Originally Posted by ;
Although as you can probably see, I go further than that. I state 4X can be classed as gambling appropriately than other things.
People get cheesed off about it since the term gambling has a bad taste to it. But why should it? If you play a game of chance using a egy that makes sure chances are on your side, who cares what they call it?
Are you convinced that currency traders consider risks for nothing ??? Think about advertisements who lock their currency risks, you other traders who take on the other side of the transaction bear the risk. . .This commercial is going to be happy to shed his currency trade since it benefits his business, however, me, you other traders made money...Originally Posted by ;
It's not risk for nothing my friend. . .In many times, everybody goes home happy also...
Thanks,
Nader
NaderOriginally Posted by ;
Only do thet maths, guy. It's simple. Every penny you get, somebody has lost. That's all there is to it. 90% blow their accounts. Maybe a few of them go home happy afterwards. I really don't understand.
Sorry, I really don't know the things youv'e said about advertisements being pleased to lose money.
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You have stirred me into creating my first post!