Spread betting..is it gambling or not?

[Lee Shepherd]

Weigh up the risks and benefits. The odds are not in your favour with spread betting. Beating the spread in the allocated time frame and allowing for all the random day to day noise in any market is a big ask. But remember you can't just rely on beating the spread, you must whip it well and truely. This requires great skill in trading, psychology and a favourable risk/benefit ratio. In any field a few will be successful, and the dreams of success will mean you will listen to those select few. Ask yourself a prudent question:
Spread betting companies are businesses - ie. they're out to make money, why do you think they are so desperate for clients? Why do you think there's so many of them? Why do you think they keep updating their sites with new layouts and gadgets - it's to keep you interested. As long as you're interested, you will "trade" (gamble), and eventually they will win. You will never be as solvent as the spreadbetting company. High risks equal high rewards. If you can find a system where low risk equals high reward, you'll be minted. Until then, stick with low risk and reap lower rewards and don't limit yourself to a pre-defined time frame. And don't worry about the tax, certainly when your trading skills are that good that the tax is effecting your profits THEN diversify.

I think this thread has been done to death and put to bed. Gambling or not, who cares what its called, I'm not one for titles, just cash, thats all, money.

Most that say that spreadbetting (in its form) is gambling are usually the ones who dont understand it or have lost a bucket load. Providing the prices stay fairly similar to the underlying, to which most do most of the time and if they dont keep within the guidelines then complain or go directly to the FSA, if you still can't handle it then go direct access.

Spreadbetting is titled gambling under U.K law and therefore makes it subject to no tax, income or capital, as an individual, this can be used to offset the fact of much higher spreads.

It's fair enough to say that if you can make money with an SB then the same should apply to direct access. I dont know, I just assume.

Gamble or not, money is what counts, get it any way you can, providing it's legal or course.

 

[new_trader]

the random day to day noise in any market is a big ask.

Random day to day noise...

Whatever that means.

A trade is a trade isn't it? Buyers, sellers, supply, demand...etc

The market is Soylent Green!