Is Financial Spreadbetting a form of Gambling?


Right from the beginning, trying to predict the way a stock or market will move has been termed stock questions. There should be no doubt towards the fact that if you are going to trade the markets, then you have to speculate on the movement of the market. Traditionally this is to think of all the money required to buy or short a stock, for instance if you wanted to buy 200 shares of Barclays Bank at 500p per share this is joker123 to deposit £1000 in you share account. In some cases your broker could let you trade on border, then you might need to deposit half the amount (in this case £500) and might buy the partner on border. However, times have changed and the financial markets have introduced numerous kinds of derivatives and instruments that enable individuals to trade without putting down the entire deposit. Spreadbetting is one of such instruments.

The first step to answering the question in the title is to define which poker and questions. Poker is defined in the book as; to play at any game of chance for the money or other limits; to pole or risk money, or anything of value, on the results of something involving chance; a venture in a game of chance for limits, esp. for high limits. Questions on the other hand pertains to; bridal in operation transactions involving considerable risk but offering the chance of large gains, esp. trading in items, stocks, etc., in the hope of take advantage of changes in the market price; a conclusion or opinion reached by such careful consideration: From the above classifications you can see that both words have similar meaning. Both involve guessing the actual end result of an event. However, if we shift away from the classifications in the book, while poker is synonymous to taking an uneducated guess, questions is synonymous to taking an educated and calculated guess. While the likelihood is against a gambler, the odds are in favour of the speculator. According to Dickson Gary the gadget guy T in his book Questions as a Fine art, “Speculation is a venture relying on calculations. Poker is a venture without calculations. Legal issues makes this distinction, it maintains questions and condemns poker.

In his biography, Remembrances of a Stock User, Jesse Livermore, a legendary stock speculator said of his early days as a speculator “Yet, I can see now that my main trouble was my failure to figure out the vital difference between stock poker and stock speculation”. Another relevant quote from his book is “Since suckers always lose cash when they gamble in stocks — they never really speculate”.

Let’s return to the question, Is spreadbetting poker? Our focus is financial spreadbetting. Quotes use the actual price in the market, e. gary the gadget guy., if I want to buy 100 shares of Vodafone, and the price in the market is 177-177. 8, the quote given by the spreadbet company has to reflect the current price of Vodafone. If the price of Vodafone comes up, I gain profits irrespective of the strategy I used. On the other hand, if the price of Vodafone sheds, I lose cash irrespective of the strategy that we used. Taking the above into consideration, it is not the strategy involving the shares, but the way I arrived at your choice to buy so that it is a gamble or questions.

First and foremost, you must always trade with a plan. Plan your trade and trade your plan. If you trade without a plan, then that is poker not questions. For example, I set out in the morning without any goal of selling or buying a share, however during lunch I notice that Sainsbury’s has grown 5% today. When i purchase 100 shares of Sainsbury traviling to where there’s that it will still rise further. My action will be classified as a gamble rather than questions. Such acts if done consistently would lead to seems to lose in the long run.

Also, if i continually violate my methods, for instance buying when the slope of the moving averaging is falling, or if i repeat the same mistakes over and over, then i am tending towards poker rather than questions.

In conclusion, if it is not used smartly spreadbetting does carry a higher risk than tradition methods and you can loss more than your initial investment, the active of risk does not make it a poker tool. It requires a different type of risk and money management compared to traditional ways, it’s suited for different brands of trading. If you think that because they have bet embedded in it’s name, then don’t speculate on the markets through any means.


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