Well most people see trading as gambling,my advice is, to master the game before playing, that’s for those who sees it as gambling.
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What’s the difference between spread betting and contracts for difference?
CFDs and spread bets are both leveraged derivatives that enable clients to have exposure to changes in an asset’s price, without owning the asset itself. An opening CFD / spread bet contract is established by initiating a buy or sell position in the required amount. This is subsequently reversed to close the contract, which is then cash settled.
The primary difference between these products is how they are treated for tax purposes:
You don’t have to pay Stamp Duty when you buy or sell contracts for difference. You don’t currently have to pay CGT on spread betting winnings because it is considered a form of “gambling” (UK Government… Not Me!). Although you could be liable to income tax if your spread betting is deemed to be a trade, that is if you’re living off the profits made.
If things go wrong?
Spread bets and CFDs are specified investments, which means firms that deal, arrange, or advise on them are required to be authorised and regulated by the Financial Conduct Authority. If you’re unhappy with the service you get or you want to make a complaint, read Sort out a money problem, make a complaint or get compensation. Just, remember however, that you cannot claim compensation if you lose money on a bet.
Did you know?
“The FCA analysed a sample of client accounts from UK CFD firms and found that 82% of clients lose money and that, on average, clients experienced a loss of £2,200 when trading these products.” These are the facts and they are undisputed…
At the end of the day… I don’t really care… I have nothing to sell… If your conscience allows you to believe you’re not playing a game… well, good for you!
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If you have done your homework properly and have a strategy then it is trading, but if you came out of nowhere just to earn high profits in no time then it is definitely Gambling!! Thank you. 
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If they see it as gambling they will never master it. Only those who knows how to analyze Forex can actually trade and not see it as gambling.
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well responded, i agree entirely
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One of the important concept in trading is to consider the risk as percentage and not as money. Usually those who gamble are focused only on the price which is in money, while in trading pro traders also deal with risks as percentage and not as money.
I’ve created a new post about the concept of dealing with risks as percentages.
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trading and gambling are not same. for trading you need to have knowledge and strategy then only you can proceed further and in gambling you just need luck.
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People who Markets it as a get rich scheme also have an impact on making others look at trading as gambling rather than a investment career, and new traders make the mistake risking huge capital at once trying to double trading accounts without risk management, losing it all at once makes it look like gambling
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I agree with you. Many people(especially new traders) think that trading is gambling but that’s not the case. If you rush into trading without proper research and knowledge then it is baseless and definitely a matter of luck. Trading involves risk which can be minimized if not controlled with proper skills and strategy
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I just checked out some dictionary definitions of gambling - and it does appear that trading is technically gambling.
Here is post I’ve just written about it.
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Absolutely well put John,
I could not have put it better myself in any way.
Go and have a beer - well done !
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Well actually I met up with @steve369 in the pub the other day - quite enlightening.
Will probably make it a regular occurrence - although how that affects his intra day trading I have no idea.
Lol
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Yes it is a fact that many traders have done this and are doing this so it is one thing that we need to look at seriously and stop gambling in the Forex markets.
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Gambling and trading do have one key thing in common: risk. When you place a trade or a bet, you risk losing money to making more money. You can ‘win’ money and you can ‘lose’ money.
But the differences mostly stop there.
The primary difference between the two is ‘probability’. With gambling, you are relying solely on ‘luck’. For example, when you roll a dice in a casino, you have no idea what number you’re going to get.
In comparison, when you trade, you can analyze the market and predict where it is likely to go. You can implement a trading strategy and set yourself goals. There is a logic to trading and an ability to increase your chances of success.
The gambler mentality will not lead to success in forex trading. _____________________________________
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Hi Deirdre, I see you joined one day ago. Welcome to the forum. I also see you have spent 4 minutes reading before commenting. I doubt you could have read even just this thread to understand the background discussion in 4 minutes, let alone any other content. We were born with two ears and one mouth for a good reason. Use them in the proportion they were metered out and you will learn a lot from this forum. Meantime, please see the Education tab for Baby Pips school of Pipsology.
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as there is luck involved along with the knowledge, that is why people think it is gambling.
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Gambling and trading do have one key thing in common: risk. When you place a trade or a bet, you risk losing money to making more money. You can ‘win’ money and you can ‘lose’ money.
But the differences mostly stop there.
The primary difference between the two is ‘probability’. With gambling, you are relying solely on ‘luck’. For example, when you roll a dice in a casino, you have no idea what number you’re going to get.
In comparison, when you trade, you can analyze the market and predict where it is likely to go. You can implement a trading strategy and set yourself goals. There is a logic to trading and an ability to increase your chances of success.
The gambler mentality will not lead to success in forex trading. _____________________________________
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Hi Deirdre,
Thank you for your reply. It takes a lot to say sorry. There is no need to say sorry to me. Humility is one of the virtues that helps a budding trader to become a successful trader. So well done. I also don’t want to discourage you from making your points either because it is the nature of this forum to ask and learn, and to have differences of opinion. So please excuse my abruptness.
How are you getting on with the forum? Have you tried the Baby Pips School of Pipsology yet? What do you hope to get out of the forum? Tell us a bit about yourself and what your dreams or goals are. I am sure you will get a lot of good advice on here, especially about not making mistakes like listening to people who tell you their 90% probability system made them a million in a week. Best of luck with Forex.
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The best way to differentiate between the two. I totally agree.
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Trading is a form of gambling, no matter how you try and twist the definition you are still putting money at risk for a payout – certainly, there are different elements to trading versus other forms of gambling but you are still a degenerate gambler at the end of the day
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