Gambling vs. "leveraged" trading

[STT]

A leveraged trade mostly has its risk in the setup and being stopped out from a move that immediately goes the wrong way.   The advantage to the trade is that once you call a trend right it can continue for much time, a long on BTC at the lows of this year would still be in profit now and continue for who knows how long before you are forced to close it out.

That seems like a big reward to risk return, gambling I think tends to be more short term immediate pay off and possibly you build up a skill playing a particular game

[omonuyak]

A leveraged trade mostly has its risk in the setup and being stopped out from a move that immediately goes the wrong way.   The advantage to the trade is that once you call a trend right it can continue for much time, a long on BTC at the lows of this year would still be in profit now and continue for who knows how long before you are forced to close it out.

That seems like a big reward to risk return, gambling I think tends to be more short term immediate pay off and possibly you build up a skill playing a particular game

I don’t think that gambling is not short term because you can also make it in a longer term. Leverage trading on the other hand can also be done in a short term and day trading can be do several time. I think what actually differentiates the two is the level of risk involved. I think leverage trading is far less risky than gambling.

[thin]

Recently I tried leveraged trading for the first time at Bitmex, and ended up in a loss. It seemed similar to a gamble, where you deposit, place a bet and either win (and double) or lose everything. In leveraged trading, if you deposit & place an order and it reaches your liquidation level, you lose everything.

Gambling can't be compared to regular trading, as in regular trading, you don't win much and don't lose much either. However, if you're trading with leverage, then that trading can be considered something similar to a gamble.

Fully agree with  you.  Playing on bitmex very similar to roulette. If you are using low leverage it is like betting on red/black. If leverage is high - then it is like betting on a number. You can win a lot, but your chances are lower. Just don't forget to setup stops every time, otherwise you can lose everything

[Ucy]

Leverage trading qualifies as gambling... though a little better than probability based gambling... It  is quite  similar to skill-based gambling because of some level of predictability in bitcoin price especially during a bull run.
If you ask me to choose between leverage and probability based gambling, I will choose leverage. But I will definitely go skill-based gambling than leverage... depending on the situation of cryptocurrency market

[Oilacris]

Leverage trading qualifies as gambling... though a little better than probability based gambling... It  is quite  similar to skill-based gambling because of some level of predictability in bitcoin price especially during a bull run.
If you ask me to choose between leverage and probability based gambling, I will choose leverage. But I will definitely go skill-based gambling than leverage... depending on the situation of cryptocurrency market

No need to choose up because you can eventually do both things as long you would able to handle the risk accompanied with it.

The thing on leverage is that you do have basis on what you are doing.It can really be considered gambling when it comes to rewards
which we know that it can be possibly big but somehow it do have same equivalent when it comes to losing.

[libert19]

I found it pretty much same, tried leverage trading for first time yesterday, made some cents with 10x leverage then went all in at 100x leverage ($11, in case you are wondering) and lost it all.

[Rufsilf]

I found it pretty much same, tried leverage trading for first time yesterday, made some cents with 10x leverage then went all in at 100x leverage ($11, in case you are wondering) and lost it all.

I agree, you can consider leverage trading as gambling because you gamble by borrowing money to increase your funds but in leverage trading it isn’t about luck, it is about making the right decision or predictions based on facts and historical data to succeed unlike gambling which is more on luck.

[xSkylarx]

Gambling is different from leverage trading. There is a house edge in gambling and for me it is just all about luck to win. While in leverage trading, your skills in ordinary trading can be helpful. It is just its more difficult to learn compared to gambling. Both have risk but I prefer leveraged trading.

[thin]

Leverage trading qualifies as gambling... though a little better than probability based gambling... It  is quite  similar to skill-based gambling because of some level of predictability in bitcoin price especially during a bull run.

there are of course few really long runs in one direction, however in most cases even on a bull movement there are periods of going down quite significantly, which is enough to ruin your wrong call.  Even professional  traders often see market differently and out of the same movement make contradicting conclusions on a next move.

[rodskee]

Recently I tried leveraged trading for the first time at Bitmex, and ended up in a loss. It seemed similar to a gamble, where you deposit, place a bet and either win (and double) or lose everything. In leveraged trading, if you deposit & place an order and it reaches your liquidation level, you lose everything.

Gambling can't be compared to regular trading, as in regular trading, you don't win much and don't lose much either. However, if you're trading with leverage, then that trading can be considered something similar to a gamble.

Is it that leveraged trading is a part of a gambling you borrowing money from the broker and play the bet.if you are doing bet involve money is it called gambling. so it is the same for me. you do gambling because you borrow money and you bet.what is the difference of gambling and leveraged trading is it the same? In trading you gamble too because you do risk in trading.in trading you lose and you earn so for me it is the same.

[inthelongrun]

Both have the same levels of risk. It depends now on your expertise. If you are a good follower of some sports then betting is a good choice. The same with a person who specializes on charting and news is fitted for leverage trading.

[imstillthebest]

Both have the same levels of risk.

i guess no  . trading is less riskier because you can choose good coins and you are sure that those coins can grow later on but in gambling you dont know if you will win or loose . gambling is more risky  .

If you are a good follower of some sports then betting is a good choice. The same with a person who specializes on charting and news is fitted for leverage trading.

yes . some people hates trading because they find it hard and they go on gambling because they think its easy  . for me i dont choose both but i rather do investing because its more less riskier trading  .

[thin]

I meant sometime we have profit from gambling and we have no profit same like this in trading.

Exactly, there are a lot of people who lose on leveraged trading even their use all their experience, historical data, etc.  Even professional traders draw very different pictures out of the same trading diagram, and one would go long, while other will short.

[iMark]

Recently I tried leveraged trading for the first time at Bitmex, and ended up in a loss. It seemed similar to a gamble, where you deposit, place a bet and either win (and double) or lose everything. In leveraged trading, if you deposit & place an order and it reaches your liquidation level, you lose everything.

Gambling can't be compared to regular trading, as in regular trading, you don't win much and don't lose much either. However, if you're trading with leverage, then that trading can be considered something similar to a gamble.

Almost similar to binary if you put your money to bet on go up or down in a short time of course the chance to win is only determined by luck. But in regular trading you don't feel loss for the all of your capital, in contrast to gambling, if you lose then you will lose all your capital

[Saint-loup]

Recently I tried leveraged trading for the first time at Bitmex, and ended up in a loss. It seemed similar to a gamble, where you deposit, place a bet and either win (and double) or lose everything. In leveraged trading, if you deposit & place an order and it reaches your liquidation level, you lose everything.

Gambling can't be compared to regular trading, as in regular trading, you don't win much and don't lose much either. However, if you're trading with leverage, then that trading can be considered something similar to a gamble.

If you use a small leverage, even with high volatility there are very little chances you get rekt. Moreover if you use a stop loss you can't get rekt.
In gambling you can't use a stop loss!

[mobnepal]

Trading with leverage is only suitable when you don't have much bankroll but you are pretty sure about the next move of particular pair. Its not advised to make leverage trading as a regular trading practice because it will at some point will lead to forced liquidation regardless of your initial bank roll and profit. I once lost 1200$ after making $600 on the same trading pair with leverage trading. Most of the cryptos keep swinging so its better to put your own money and keep buying/selling with every swing rather than taking loan for buying anything.

However I can't agree that leverage trading can be considered as gambling.

[joshy23]

well, really gambling is much easier than trading, because our trade must know the market conditions of each country or region. gambling just how to see opportunities and opportunities to win the game.

In terms of how easy to takeover yes gambling is far easier than trading, you can just bet all you want and expect luck to permits you no need to calculate and think of anything else, but in terms of chances its much better to take trading if you do have time to research and review more about the market condition for you to take advantages of situations.

[bones261]

In terms of how easy to takeover yes gambling is far easier than trading, you can just bet all you want and expect luck to permits you no need to calculate and think of anything else, but in terms of chances its much better to take trading if you do have time to research and review more about the market condition for you to take advantages of situations.

     Not all forms of gambling are just based on luck. If someone is a sports better, they can just randomly pick teams to win; however the more skilled gambler knows the players and what is going on with the teams to attempt to make a better determination. Also, in the game of Blackjack, some people keep track of the cards that have been dealt by card counting, which does take quite a bit of thinking. However, even in games that are purely chance, some gambler's still do a great deal of thinking because they believe they have a "system" for picking out certain outcomes.

[leowonderful]

I actively bet on CS:GO matches at the moment, and I can confirm that I also put time in my analysis of two teams going against each other just like I would be planning out entries, stops and exits in advance for a trade, though if you want to you can just pick one team and cross your fingers too. It's good to note that even with lower leverage, leveraged trading can be a gamble if you're not putting any thinking or analysis into what you're doing. At leverages of above 10x things just become gambling, because your liquidation price is just so close to your entry that a few dollars of movement can mean a liquidation or forced closure of your position.

[STT]

Ive done tons of CSGO bets and its best done un-leveraged with just your own inventory to spend, win or lose.    Converting into BTC was not a problem as it is also an leveraged space for me and since BTC often rises over years I didnt have much regrets.   CSGO skins can also rise in price, double or more.

The problem with leveraged trading, which I have also done is the cost of finance over night.   Hence the term day traders, as people can not justify the risk and cost of these nightly holds.   Another notable time period would be Fridays when many will not hold until Monday.

Hot money or leverage has a fairly large influence on our various markets including BTC now as its entered futures trading.    Gambling I would always recommend not to mix with money borrowing, not unless you've done it for years and have it registered as your primary job which is almost none of us.