Online platform eToro is opening up the complex world of foreign exchange trading to the masses through a simple and social user interface - but is this democratization of currency speculation good for the market?

Much like online prediction markets, eToro makes trading easy and fun, with leaderboards, discussion threads, and neat visualizations, but the truth is that the FX market is not fun and games. Participants are not betting with fake cash on who will win the World Cup in the pursuit of prizes, but rather are speculating on the currencies of real countries. The FX market serves a very important purpose: to facilitate transactions worldwide in all currencies. A collapse in currency can have very a real impact on individuals who never have even heard of the FX market and certainly never chose to gamble their future on it (ask the people of Malaysia or Thailand in 1997).>


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Posted: July 18th, 2010
at 1:27am by Koookiecrumbles

Categories: trade

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