The Editor, Sir:

Though it has been around for many years, advances in electronic trading have now made the business of forex trading available to individual investors on a scale unimaginable just a short time ago.

Currency trading is about speculating on the value of one currency versus another. It is just like buying an individual stock, or any other financial security, in the hope that it would make a profitable return. In the forex market, the securities you speculate with are the currencies of various countries. Put them all together and you've got the largest, most dynamic and exciting financial market in the whole world.

Speculating is all about taking on financial risk in the hope of making a profit. It is certainly not gambling and neither is it investing. Gambling is about playing with money even when you know the odds are stacked against you. Investing is about minimising risk and maximising return over a long period of time. Speculating or active forex trading is about taking calculated risks to attempt to realise a profitable return, usually over a very short period of time.

Forex speculators use mathe-matical formulas and models to come up with buy-and-sell decisions. These formulas and models have built-in defined rules as to when to enter and exit trades, thus reducing risks.

The foreign-exchange market is not an 'investment', 'gambling' or a 'pyramid' scheme. It is the world's largest financial market formerly dominated by global banks, multinational corporations, hedge funds and wealthy private individuals the world over.

The Jamaican Government and the Bankers' Association must get out of the dark ages, become informed and inform their citizens correctly. But then, why should they, when they want to continue pushing their weak financial products? Spreading misinformation and employing scare tactics will not work.

I am, etc.,

DEAN KIRKLAND

psalm27@embarqmail.com