Rolling Spot Forex Trading – Financial Problem or Ponzi?

21 Pages Posted: 25 Jan 2012

See all articles by Borut Strazisar

Borut Strazisar

ERUDIO - European Institute for enterpreneurship research

Date Written: January 23, 2012

Abstract

Rolling spot forex is a growing business. The key problem is whether it could be classified as a financial instrument or could be classified as gambling contract. Each legal system has different approach. Nevertheless the legal position of rolling spot forex is unclear. This submission is divided in three parts. First part gives the explanation of forex trading. It shows what is understood under this term. Second part deals with the types of forex trading. This part gives also a brief explanation of each type of forex trading ant main type characteristics. Third part is main part. It deals with the problem of internet forex trading (which is spread around the world) .This part analyzes types of trading platforms. It shows who could be the counterparty in retail forex trade. It tries to find out what rolling spot forex trading means. Key question is, if rolling spot forex contracts fall under MiFID system. And finally deals with the problem of (il)legality of such trading.

Keywords: rolling spot forex, financial instruments, gamblnibg contracts, illegality of forex

JEL Classification: F31, G15, G18, G28, K23, K33

Suggested Citation

Strazisar, Borut, Rolling Spot Forex Trading – Financial Problem or Ponzi? (January 23, 2012). Available at SSRN: https://ssrn.com/abstract=1990526 or http://dx.doi.org/10.2139/ssrn.1990526

Borut Strazisar (Contact Author)

ERUDIO - European Institute for enterpreneurship research ( email )

Litostrojska c. 40B
LJUBLJANA, SI -1000
Slovenia

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