Forex trading involves speculation on the price movements of currency rates in the market. In this post, we will be examining forex trading as a game.
First, games and their features will be examined. Then correlations will be drawn.
What is a game?
A game is a organized form of play which is usually engaged for entertainment or fun. Although games can sometimes be played for purely enjoyment, they are also played for rewards.
Games have become an integral part of human existence and present in just about every culture. Games are usually captivating and interesting, causing many to play them.
Below are some of the features of games.
Features of games
The features of games that will be examined in this post are conflict, strategy, decision taking, imperfect knowledge, risk-taking and reward.
- Conflict: This is an essential feature of any game. The conflict is between two or more players resulting in a win for some and a loss for others.
- Strategy: Several games involve the deployment of some sort of strategy to beat the opponent. An example of a strategy-based game is chess.
- Decision making: When playing a game, the player is constantly faced with decisions that must be made. This is necessary for continuation, of gameplay.
- Imperfect knowledge: In some games, decisions have to be made with imperfect knowledge. This means that the best play in these types of games relies upon a probabilistic strategy. And as such, the outcome can not be guaranteed. Examples of this type of game are card games.
- Risk-taking: Sequel to imperfect knowledge, making decisions with imperfect knowledge comes with a risk. A lot of games involve risk-taking.
- Reward: A lot of games most especially video games offer incentives. These are usually granted upon completion of tasks, missions etc during gameplay.
Forex trading is the buying and selling of currencies with the aim of making a profit on the difference. When trading forex, there are a couple of features that make it similar to a game.
Features of forex trading as a game
- Conflict: There is usually a conflict between two parties when taking a trade. When you are buying, then somebody is selling. Equally, when you are selling, someone is buying. Therefore, when you make a profit, somebody loses.
- Strategy: A lot of games require the deploration of one strategy or another. This is also seen in forex trading. Trading is done by following a specific set of rules: your strategy.
- Decision making: Trading forex involves decision making from analyzing information available in the form of economic data or price charts.
- Imperfect knowledge: In forex trading, since nobody knows the future, the decisions taken are done based on imperfect knowledge. This means that while you can predict the outcome to a certain degree of accuracy, nothing is set in stone.
- Risk-taking: Since in forex trading you make decisions with imperfect knowledge, there is always a risk attached.
- Reward: In forex trading winning also comes with a monetary reward. Only in this case, it is real and not virtual as is seen in most games.
In conclusion, the correlations between forex trading and gaming have been drawn. So, get your game face on and start winning!!
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