{"id":5672,"date":"2020-11-09T16:41:41","date_gmt":"2020-11-09T16:41:41","guid":{"rendered":"https:\/\/www.bettingwebsites.org.uk\/?page_id=5672"},"modified":"2021-09-16T14:42:14","modified_gmt":"2021-09-16T14:42:14","slug":"why-is-trading-not-classed-as-gambling","status":"publish","type":"page","link":"https:\/\/www.bettingwebsites.org.uk\/articles\/why-is-trading-not-classed-as-gambling\/","title":{"rendered":"Why Is Trading Not Classed as Gambling?"},"content":{"rendered":"
Trading on stocks, forex, commodities and so on has been something that many people have taken an interest in over the decades. And in the same vein, it has been able to provide great rewards to players throughout those years, too. Yet, why is this not classed as gambling in the United Kingdom? You basically take an educated guess on whether the price of an asset will go up or down in a bid to make money. In that case, why is it classed as something separate to gambling when it\u2019s pretty much the same thing?<\/p>\n
In the UK, trading is regulated by the Financial Conduct Authority (FCA), and unlike gambling, any profits gained from it are fully taxable. This is a difference between them indeed, but why are they separated in such a way when so many of their traits are similar? Sometimes, people see trading as being a much more high-end form of professional gambling, whereas typical casino gaming and sports betting for example, are looked down upon as being a low-level activity. But why are these distinctions in place already? Generally, they both require you to deposit money, \u201cbet\u201d on something and potentially receive a pay-out.<\/p>\n
We are going to be taking a closer look at why trading is not classed as gambling, and furthermore, why in some countries you are able to trade on stock markets even when gambling is considered illegal. Let\u2019s find out what trading has over gambling that makes it so much more available and accessible around the world.<\/p>\n
There are numerous similarities between trading and gambling, but the biggest comparison can be made in the fact that there is no guaranteed outcome with either of them. In both cases, traders and players put money into something and then hope it will make them profit in one way or another. Therefore, regardless of if you are forex trading on the Hungarian forint or placing a bet on a casino slot game, you are wagering on there being a win for you, rather than a loss.<\/p>\n
At the same time, a professional forex trader must accept that there is no real way of predicting with absolute certainty that a trade will be a winning one. This is exactly the same as someone playing poker or blackjack, for example. In both of these instances, you are risking your money in the hope that it will produce more in return. Both professional traders and professional gamblers should enter into such activities with the understanding that losing is just a part of the game, in general.<\/p>\n
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One final thing to make mention of is that regardless of whether you are gambling or trading, there\u2019s a psychological grit required. You need to be fully prepared for losses to occur, because they are a natural part of both sectors. You shouldn\u2019t overreact to these and try chasing your losses by betting\/trading more in subsequent rounds. Both sectors should provide a fun way to try and make money, and you shouldn\u2019t be using more money than you can afford to lose.<\/p>\n
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Of course, while the are similarities between both industries, there are differences as well. To begin with, if you are proficient in trading, you will have a system in line for participating in such. This, in theory, should present you with a positive expectancy over the long-term. That system should have been back-tested, so you will be aware of the ins and outs and you will understand that there are occasions where you will consistently lose money. Over a long period of time, however, you should come out on top.<\/p>\n