Forex Vs Football

Piggy has noted that there are similarities between forex trading and the game of football. Firstly, forex is the largest asset class by way of liquidity and this is in line with football, which is by far the most common sport world-wide. Secondly, in a football match two teams play against each other so as to win points in a particular league, for example Manchester United vs. Chelsea FC. Forex trading is done in currency pairs such as USD vs. GBP or GBP vs. JPY with an objective of earning profits on currency movements. There is generally the first division as well as the second division in a league. In forex, there are major, minor and exotic currencies. In order to win matches, coaches need to come up with strategies and game-plans and so do forex traders.

That said, both forex and football are leading the pace as emerging alternative investment classes even for long term investors. For example, a new generation of young and wealthy entrepreneurs are looking for new ways to invest their money through football club ownership. Russian billionaire Roman Abramovich became the owner of Chelsea FC in 2003 while Sheikh Mansour owns Manchester City. PEAK6, a Chicago-based Private Equity vehicle, owns 25% of Bournemouth, while Josh Harris acquired a significant interest in Crystal Palace.

Football clubs earn revenues through various means such as ticket sales, television rights and commercial revenue. This includes shirt deals, training kit deals, stadium naming rights, leisurewear partnerships and major sponsorship deals at a national and global level. Manchester United has a £75m per year kit deal with Adidas while Bayern (German) has the second largest kit deal with Adidas worth £42.5m a year.

While the income sources highlighted have nothing in common with forex trading, the buy low and sell high concept applies in both areas.  In forex trading, in-order to profit one has to buy expecting prices to go up (long position) and sell expecting prices to fall (short position). A good example of the buying low and selling high concept in a game of football would be Porto, a Portuguese club that has made nearly €500m in player sales over the past decade. Real Sociedad has generated €62m in transfer fees since 2012 from sales of academy graduates.

Overall, the underlying fact is that both forex trading and football are games that are fast-paced and often full of surprises. There are also tremendous opportunities to generate money in both games. This is why top football strikers who score more goals have ridiculously high earnings and so do successful forex traders!

Piggy has recommended beginners who would like to venture into the world of Global Market Online Trading to complete the babypips course. The instructions are outlined here;

Join a WhatsApp based social trading group today by following the link;

Download the Android App using the link;

Open a Free IronFX Demo Trading Account today in three simple steps by following the link;

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