What's the difference between fx trading, and betting on a sports match? its both about luck, isnt it?

Question

both are qualified guesses as well as luck, so whats the difference?

Answer 1

It's only the same in the fact that you are backing your judgement with money. It ends there. The factors that you could get right or wrong are different. A sports match has an degree of previous form and involves people who may or may not play to form. it is aqustion of what happens on the night. I don't think you could say anytyhing like this about currencies. They are ractin to each other for a myriad of reasons, maybe two being greed and fear.

Answer 2

There is no fundamental difference, you are correct. In both Horse Racing and Forex trading, someone else has to lose for you to win, the money doesn't just appear out of nowhere.

The stock market is different, though, in that money can indeed "appear out of nowhere" if sufficient people have confidence that a particular company is going to succeed and make greater profits in the future...

Answer 3

How is speculating in a market similar to placing a bet on a horse?

I dont even know where to begin.  Sports betting for one has fixed odds.  The market doesnt.  I could go on and on.  

We cant predict outcomes but that doesnt mean we are guessing.

Answer 4

Not exactly.  With regard to FX trading - if you are trading on a spot basis (i.e. two days settlement) then you are just betting.  if you are trading on a forward basis then the forward exchange rate is based on the interest rates of the currecies involved.

Answer 5

Providing you place a bet at the bookies on a sports match you will at least know how much you stand to loose besides which its more fun.

Steer clear of Spread-Betting you will eventually loose far more than you can afford and where is the fun in that?

Cheers

Roger