Trading Forex is Stacked Against You, Here’s What to Do About It
A trader’s fortunes are inexorably linked to the vagaries of market conditions. Trends appear abruptly and are rendered obsolete within trading sessions. This is especially true when considering the Forex markets. A strategy profitable in the morning might cost you dearly later in the day. Trading is a game of skill — one that involves significant financial risk. Or so you’ve been lead to think.
The reality of the Forex market is that the proverbial ‘cards’ are stacked against you. And yes, while it is very possible to make money in the Forex market, this does not negate the fact that you must surmount significant odds to be profitable.
Here are just a few of the forces one must overcome to secure a profitable position in the Forex market.
Overcome HFT’s
High-Frequency Trading is one of the advantages most traders wished they had. Setting up racks of high-powered servers in such proximity to exchanges, that between the time you click your mouse to execute a trade — an HFT brokerage has bought, and sold at a profit — the exact position you’re looking to hold.
Overcome Trading Fees
Naturally, there’s a cost to doing business in the markets. However, most traders, new to seasoned, will understand that overtrading and the price of executing trades can quickly eat through margins. With rates ranging from $1.99 to $39 per trade — isn’t it about time you had an option to trade, test and execute positions without a high cost?
Overcome Market Makers
Unbeknownst to many traders are the market makers who leverage significant advantages to their benefit. From brokers who can leverage their ability to move you out of market positions at a price they determine, to large clients who enjoy a priority sequence before you — the market makers move in ways that a retail trader simple cannot.
And there are more.
Thankfully though, you don’t have to put real money on the line to familiarize yourself or experiment with the entropy of Forex trading.
Here’s What To Do About It
You could, instead, participate in a fantasy trading competition that uses real market data. With zero advantages like the ones listed above — players instead compete on true skill, using real market data for fictional portfolios. The catch? Winners can earn real money. It’s life — and all of it is made possible by ZeroSum, and the ZFX token.
Here’s How It Works — And Why It Matters
The ZeroSum platform supports the creation of peer-vs-peer competitions of any kind and lends itself especially well to the trading system. ZeroSum is built on the Ethereum blockchain, making it a versatile, low-overhead method to carry out these competitions. ZeroSum’s first implementation is a market prediction game in which players compete against each other to see whose fantasy predictions made based on real market data produces the greatest profits.
The benefits of participating in the competitions are twofold. Firstly, participants are given the opportunity to learn the ropes as traders without the risk and fees involved in actual trading. In addition to that, players stand to win money based on their success in the competitions.
The first competition format created on the ZeroSum platform is a Forex trading game. Each player creates a fictional portfolio consisting of selected instruments. These portfolios are then put to the test in real-time market conditions. Players compete not against the market, but each other. A live leaderboard keeps track of the relative performance of each participant. At the conclusion of the contest, the PnL’s are marked to the value of the most up-to-date price quote, which is used to determine the winners.
Payouts are made in the form of ZFX tokens, the native currency of the ZeroSum platform. The tokens are an ERC20 blockchain implementation, and therefore carry all the benefits of transacting within the Ethereum ecosystem. Chief among those is the trustless environment, which means that transactions occur accurately without the supervision of a watchdog agency. In addition to that, using the Ethereum blockchain obviates the various intermediaries present in real-world retail trading. This makes ZeroSum cheaper and more secure than other trading platforms.
Visit ZeroSumMarkets.com to learn more about the platform and participate in active trading competitions.