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Gambling In The Currency Exchange Market

Gambling In The Currency Exchange Market

Gambling In The Currency Exchange Market

For this discussion try your hand at gambling in the currency exchange market. Take an imaginary $10,000 and “purchase” some foreign currency at today’s exchange rate, then convert back your foreign currency to dollars in a few days and calculate your loss or gain. Those of you who are high rollers can “put all your eggs in one basket” and buy just one foreign currency with your $10,000. Those cautious types can choose to diversify and purchase multiple currencies.

Many webpages have foreign exchange rates and exchange rate calculators. Two of them are xe.com and x-rates.com. If you really want to get fancy, register at forex.com and get the site’s free currency trading software.

Let your classmates know about your experiences, and share the details of your calculations. Give an initial update of how much money you have made or lost in the first week, and post at least one additional update by the end of the module.

Also, make sure to address the following questions regarding your experience with currency trading:

How does it compare to other types of gambling you’ve done?

Would you ever invest in currencies using your own money after reviewing the material in this module and doing some pretend gambling in foreign currencies?

(just a paragraph)

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