Sport Betting vs Forex Trading – Who came out best during the Covid Lockdown
When looking at both sport betting and Forex trading, there are quite a few differences that can be noted.
Where Forex trading involves the buying and selling of financial instruments using spreads, margins and leverage, sport betting involves an input which delivers results without spreads, margin, or leverage.
Forex trading involves a certain level of skill, knowledge, experience, and active participation as strategies must be developed and applied in different markets with different instruments where sport betting does not involve active participation.
Sport betting merely involves the placing of a bet and the wait for the result of the match with the result not depending on whether the match is watched, or not.
Forex Trading and Sports Betting have exploded
During the Covid-19 pandemic with countries, economies, and businesses closing during national lockdowns and quarantines to attempt to curb the spread of the virus, people have been exploring other ways to secure income, or to make additional income.
This has led to an explosion on the online front, specifically where Forex trading and sport betting are concerned. Seeing that both can be done from the privacy of one’s home and there is ample opportunity to make profits, there have been substantial increases.
Where currencies are constantly being exchanged for various reasons and the Forex Market has seen a substantial increase in trading volumes despite the pandemic, sports betting has shown a decline.
When most social activities were prohibited due to safety and health measures being implemented to curb the spread of the virus, sports matches were halted and thus spectators and those who bet, could no longer gamble on their favourite teams.
Due to the various lockdowns around the world, the global sports calendar was decimated, and many punters were left without any betting opportunities. Numerous brokers around the world have seen significant increases in their client base.
One such broker, Plus500, saw an increase of nearly 200,000 traders who registered for live trading accounts in the first quarter of 2020, and these numbers have rapidly increased across the hundreds of global online trading brokers.
Plus500 saw revenues which jumped six-fold for the quarter to $316.6 million YOY and shares were sent up by 10%. These increases are not merely attributed to only to those who seek additional income, but many punters have joined the thrall flocking to the markets.
Some of the most significant postponements include that of the 2020 Tokyo Olympics which have been moved to July 2021, the Euro 2020 which has also been moved to 2021, and numerous other sporting events that provided ample sport betting opportunity.
The Covid-19 pandemic is still widespread as new infections and deaths are recorded globally every day and with research into a vaccine continuing, it is uncertain when all sporting events will be allowed once again.
Until such a time, more punters are expected to turn to the various financial markets. While some are trading for fun, others have made it a hobby and there are numerous others who count on the backdrop of improving markets to make profits.