Is Financial Spreadbetting a form of Gambling?


Right from the beginning, trying to predict the way a stock or market will move has been called stock rumours. There should be no doubt about the fact that if you are going to trade the markets, then you have to speculate on the movement of the market. Traditionally you felt the need to create all the money required to buy or short a stock, for instance joker สล็อต if you wanted to buy 200 shares of Barclays Bank at 500p per share you felt the need to deposit £1000 in you share account. In some cases your broker could let you trade on perimeter, then you definitely have to deposit half the amount (in this case £500) and will buy the spouse on perimeter. However, times have changed and the financial markets have introduced assorted types of derivatives and instruments that enable visitors 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 the text casino and rumours. Casino is defined in the thesaurus as; to play at any game of chance for cash or other pins; to position or risk money, or anything of value, on the upshot of something involving chance; a venture in a game of chance for pins, esp. for high pins. Rumours on the other hand means; involvement in company transactions involving considerable risk but offering the chance of large gains, esp. trading in everything, stocks, etc., in the hope of exploit changes in the market price; a conclusion or opinion reached by such consideration: From the above upgrades you can see that both words have similar meaning. Both involve guessing end result of an event. However, if we shift away from the upgrades in the thesaurus, while casino is synonymous to taking an uneducated guess, rumours is synonymous to taking an educated and calculated guess. While the it’s likely that against a gambler, the odds are in favour of the speculator. According to Dickson Gary T in his book Rumours as a Fine art, “Speculation is a venture in relation to calculations. Casino is a venture without calculations. Regulations makes this distinction, it maintains rumours and condemns casino.

In his biography, Remembrances of a Stock Agent, 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 know the vital difference between stock casino 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 make contact with the question, Is spreadbetting casino? Our focus is financial spreadbetting. Quotes derive from the actual price in the market, e. gary., 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 increases, I make money irrespective of the strategy I used. On the other hand, if the price of Vodafone declines, I lose cash irrespective of the strategy that used. Taking the above into consideration, it is not the strategy of shopping for the shares, but the way I arrived at the choice to buy rendering it a gamble or rumours.

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 casino not rumours. For example, I set off in the morning without any objective of selling a share, however during lunch I notice that Sainsbury’s has gone up 5% today. Then i retail outlet for 100 shares of Sainsbury ready for that it will still rise further. My action will be classified as a gamble rather than rumours. 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 repeatedly, then i am tending towards casino rather than rumours.

Finally, if it is not used wisely spreadbetting does carry a higher risk than tradition methods and you can loss more than your initial investment, the advanced of risk does not make it a casino tool. It requires a different type of risk and money management compared to traditional ways, it’s suited for different varieties of trading. If you think that because it provides playing embedded in it’s name, then don’t speculate on the markets through any means.


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