Spread betting or Spread trading?

[osmanhalifa]

Which you think best describes this way of accumilating wealth? I think spread betting is iincorrect because we have all the tools we need to execute sucessfull trades. I would understand if brokers didnt allow any charting software and traders only depended on speculation. I dont like the way its precieved as gambeling, if it is gambeling I think we as tradefs own the casino.

 

[Splitlink]

It is gambling because the trader is not trading. He is taking, and the SB firm is accepting, a bet on which way the instrument is going to move. There is no possession, as in the case of buying a future for delivery on the exercise date.

An SB company may put your bet into the purchase of a contract or, if it thinks that it is safe to do so, just hold your cash and keep it all himself if you lose or pay you back if you win.

I want to be clear that I use an SB firm, consider it as trading because it is close enough to make little difference to me, but I accept it for what it is.

 

[stucash]

It is gambling because the trader is not trading. He is taking, and the SB firm is accepting, a bet on which way the instrument is going to move. There is no possession, as in the case of buying a future for delivery on the exercise date.

An SB company may put your bet into the purchase of a contract or, if it thinks that it is safe to do so, just hold your cash and keep it all himself if you lose or pay you back if you win.

I want to be clear that I use an SB firm, consider it as trading because it is close enough to make little difference to me, but I accept it for what it is.

Hi splitlink, I am newbie and so lucky saw you guying talking about "is spread bettinng trading or gamling" because i am confused as well. I am about to start spread betting next week only because in the first step thread of T2W, it was suggested that if you are interested in trading and want to a trader as your career, probably spread betting is a good way to start.

However now, spread betting is not trading, it is gambling, which is strictly prohibited in trading life, so would you mind clarifying a bit more on this issue?

THANKS.

 

[Caledonianbu]

I don't believe spread betting necessarily to be gambling. I mean, at it's core it is, but so is trading. It's all a risk/reward ratio, In trading you buy something, knowing full well that the next day it might be worth absolutely nothing - is this gambling, the possibility of loosing everything in return for a possible gain?

If you spreadbet sensibly and within your means, not becoming emotionally attached, then in my opinion it is only slightly more 'gambling' than trading shares 'proper'. I too am only a beginner, but have been reading/paper trading for a while now... just my 2 cents!

 

[osmanhalifa]

Its Gambeling if u dont do your homework. Sport and horse betting, how can u do technical analysis to find opportunities, the odds are against you coz the house always wins. Trading becomes gambeling if u just enter into trades blindly.

 

[Splitlink]

It is what you, in your opinion, think it is. It does not make one jot of difference these days, although SB firms did not have a good name years ago. They are steadily cleaning up their acts now, though, and the spreads are closer and the fills fast enough for me.

With a SB company you bet on how much your instrument will go up or down. If that is not gambling I don't know what is. That there is a skill to it that some care to call trading, I don't doubt, and I cheerfully use a SB firm all the time, although I still have an account with a broker.

 

[shadowninja]

When I went to university, I wasn't guaranteed a job at the end of it - it was a £20k gamble. Do you understand what gambling is? Trading is gambling. Getting married is gambling. Crossing the road is gambling. Starting a business is gambling. Stop misusing the term "gambling".

Gamble:
1. a. To bet on an uncertain outcome, as of a contest. b. To play a game of chance for stakes.
2. To take a risk in the hope of gaining an advantage or a benefit.
3. To engage in reckless or hazardous behaviour.

Some people like to think they are really clever by using the term "invest". They're gambling and are just kidding themselves; they shouldn't even risk money. Get it?

And yes, you can apply TA to sports betting.

 

[Splitlink]

gambling needs luck, trading also needs !you can work hard ,but it don't mean that you will be successful in trading!

Everything needs luck. The point is that betting/trading will always be all things to all men. Especially when they have to explain their profit/loss to their partners

 

[Hoggums]

Spread betting is GAMBLING. Otherwise you'd have to PAY TAX on your winnings. End of.

 

[Splitlink]

Spread betting is GAMBLING. Otherwise you'd have to PAY TAX on your winnings. End of.

They don't like that term, though, Hoggums. Especially, the ones who dedicate hours to technical analysis and theory. After all that hard work, to call it GAMBLING! Have some respect for the profession, mate!

Call it something nice and impressive, like CRA ie Calculated risk analysis. :smart:

 

[Hoggums]

Listen, if HMRC ever asks.. you are gambling.

Anyway I'm pretty sure there are lots of horse racing gamblers who put just as much effort into studying form and running conditions, you'd never call them traders would you?

 

[Splitlink]

Listen, if HMRC ever asks.. you are gambling.

Anyway I'm pretty sure there are lots of horse racing gamblers who put just as much effort into studying form and running conditions, you'd never call them traders would you?

I had not thought of HMRC. That's an excellent reason and, really, the only one that matters

 

[shadowninja]

Once more, trading is gambling. Look up gambling in the dictionary and tell me how its definition is different from what you might do if you have DMA.

 

[Hoggums]

Agreed, just think of trading as gambling with the odds, rather than against them.

 

[barjon]

They don't like that term, though, Hoggums. Especially, the ones who dedicate hours to technical analysis and theory. After all that hard work, to call it GAMBLING! Have some respect for the profession, mate!

Call it something nice and impressive, like CRA ie Calculated risk analysis. :smart:

Aw, come on, Split, we're both of an age to know that we're speculators

jon

 

[Splitlink]

Aw, come on, Split, we're both of an age to know that we're speculators

jon

I'm going to do a Murdoch on you. I don't know what is going on and I'm very disappointed.

 

[shadowninja]

Agreed, just think of trading as gambling with the odds, rather than against them.

Sure - but only for the profitable traders.

 

[stucash]

it seems that it depends on what you are trading; sports betting seems more of gambling but stocks seems a bit more analytical therefore inclined a bit more to trading rather than blindly gambling. I think I have got a idea from your debates. : )

 

[Pazienza]

"Do you gamble, Pazienza?"

"Every time I order out."

Hit it!

http://www.youtube.com/watch?v=DpRYdcvYzrw

I know it should be Naked Gun (at least I think so, they recycled a lot of gags but I don't remember that one in PS), but I couldn't find the title sequence for NG on youtube. It's virtually the same anyway.

 

[shadowninja]

Tonight's special guest star, Lorne Green... character dead at the start. Guess they could only afford him for 5 seconds.