Leverage trading is nothing but gambling

[maydna]

A lot of people usually follow public opinions on something rather than trying it out themselves. As someone that has tried leverage trading—I have seen the good and bad side it has to it and I can confirm that leverage trading might pan out to be a derivative of gambling depending on how you use it.

I know tons of investors that use it to invest in apy/apr style defi products and also investors that use leverages to open or maintain trade positions. You don't have to go haywire with 10 to 50x leverages. Even 2-3x leverages goes a long way for an investor/trader.

Really, the tool is whatever you make it out to be.

Yes, that is what happen to them. So they just gamble without knowing if they will profit or lose. Leverage trading have good and bad so we should choose the good by learning more about using leverage trading to make a profit.

We can't just risk our money without analyze and only follow others suggestion or prediction because that is our money which we need to take care.

If you know how to use leverage trading, you will see the chance to profit so learning before doing leverage trading will be better. It will be better if you have skill in trading so you can check the market from your analysis.

[alastantiger]

Sometimes even if you make use of low leverage in future trading, you might still end up being liquidated if there is a sharp dip or pump in d market, so we shouldn’t think its only people that make use of high leverage that get liquidated.

Agreed, people don't actually understand future trading before the adventure into it, they only get the realization when they start getting liquidated. I don't understand why people choose to trade with high leverage when they know our prediction is only 50% right and the other is wrong because the market can disappoint us when we least expected. Anyone trading with leverage is gambling with a little touch of our skills and knowledge helping us make our prediction to be a little bit correct.

There's no one that can stay consistent with victory when trading leverage hence noone can say they have perfected future trading like how people say for spot trading and they won't be lying. The similarities between trading and gambling isn't big and when you decide to go add more risk to it then what you're doing is gambling.

[tvplus006]

...I don't understand why people choose to trade with high leverage when they know our prediction is only 50% right and the other is wrong because the market can disappoint us when we least expected. ..

I think this is because newcomers believe that the liquidation of balances occurs with others who do not understand what futures trading is. But this will not happen to them, as they are more fortunate and know more about margin trading.

[dunfida]

A lot of people usually follow public opinions on something rather than trying it out themselves. As someone that has tried leverage trading—I have seen the good and bad side it has to it and I can confirm that leverage trading might pan out to be a derivative of gambling depending on how you use it.

I know tons of investors that use it to invest in apy/apr style defi products and also investors that use leverages to open or maintain trade positions. You don't have to go haywire with 10 to 50x leverages. Even 2-3x leverages goes a long way for an investor/trader.

Really, the tool is whatever you make it out to be.

Yes, that is what happen to them. So they just gamble without knowing if they will profit or lose. Leverage trading have good and bad so we should choose the good by learning more about using leverage trading to make a profit.

We can't just risk our money without analyze and only follow others suggestion or prediction because that is our money which we need to take care.

If you know how to use leverage trading, you will see the chance to profit so learning before doing leverage trading will be better. It will be better if you have skill in trading so you can check the market from your analysis.

The only good thing on this is on the time that you do really know on what you are doing on which this will be that an advantage into those traders who are indeed profitable. This is why whenever i do see threads in speaking about leverage or futures trading on which i do recommend that you should be that trying out to make yourself mastered first when it comes to spot trading before you will be jumping into leverage ones.

The only main issue on here is that whenever those complete noobs do see those high leverage trades profits on which this will be sparking out their interest on doing it also without even trying out to think about on the risks involved specially when making or putting up high leverage. They do just that simply copy it out and wont be caring at all as long they do set their position then they are good to go and waiting up for the profit to come on which we do know that this isnt the case. We've seen tons of traders who do messed up and blown up their trading capital because of having that wrong assumptions.

[tottong]

Futures trading is only different in terms of risk because there it is similar to a contract that can be lost when the predictions we determine are wrong because they are opposite to the direction of the road that occurs in the market. And I also thought it was similar to gambling, but the difference itself still exists because trading is always in the market, not in a casino or the like. In addition, the level of profit that can be obtained by traders who make correct predictions is also quite equivalent so that deeper knowledge is indeed needed in futures trading.

That's technically speaking because indeed trading with gambling has a different place for someone to be involved in it.
Trading will only be more like gambling if someone does not have good knowledge, so when they are involved in trading and rely on luck, that's where trading is considered the same as involvement in gambling.
Futures trading is not an easy activity for everyone because this kind of trading is difficult to do if someone does not have good knowledge.

Knowledge and experience are needed so that we can be involved in trading in a much more correct way and not trade by relying on luck like gambling.

[Webetcoins]

I don't understand why people choose to trade with high leverage when they know our prediction is only 50% right and the other is wrong because the market can disappoint us when we least expected. Anyone trading with leverage is gambling with a little touch of our skills and knowledge helping us make our prediction to be a little bit correct.

It has been said time and time again and is said in every single discussion where futures or margins trading is being discussed that futures is not for newbies or those who don't have enough knowledge or experience, but for those who have enough knowledge and experience, there are tools and techniques that they can use to mitigate the risks, and they know how to manage their trades efficiently without letting themselves get liquidated unless someone is purely gambling with their funds and don't use those tools to manage their trades.

Have you ever heard about stop-loss? Or take profit? If you haven't, then you also lack knowledge about trading. Experienced traders know how much leverage they need to use with how much margin they are allocating for a trade, and they only choose a percentage of their total capital so that they can keep adding margin or more into the trades to keep pushing the liquidation prices if they are using isolated margin mode.

There's a lot to learn in this space, those who don't learn will keep losing, without a doubt.

[Cookdata]

If we look at it that way, not only is investing in crypto considered gambling, but our lives are also a gamble. Because everything has risks and we can't guarantee or be certain about anything.

Is there any guarantee that if we study hard and graduate from college, we will get a high-paying job in the future? What guarantees are there that if we start a business and 10 years later we will become entrepreneurs? Or for traditional investments such as gold, real estate...what guarantees that we will not face unexpected risks and are absolutely safe? Our life is a gamble and every decision we make is relative, there are no absolute guarantees.

I think the word gambling is to on abused. When people take risk, streetwise they say you are taking a gamble because you don't know how the outcome will be which is fair but saying it's literally a gambling is wrong entirely because it's only an gambling you can do and have nothing back. If you buy Bitcoin today trading above $100k and it crash down to $70, you risk which is gambling buy even if it go as low as $50k, you didn't loss anything yet unless you sold at that price.

Gambling speak differently, you can't go into gambling and expect to come back the way you start, you can win some at some point but not everytime. This is why investing with caution save you most of the time. You don't have to deal with to much post trauma loss that may arise later. That's how you differentiate between risk taking and real gambling, you can lose your entire money when you gamble but not sure on investment that are less risky.

[shinratensei_]

...I don't understand why people choose to trade with high leverage when they know our prediction is only 50% right and the other is wrong because the market can disappoint us when we least expected. ..

I think this is because newcomers believe that the liquidation of balances occurs with others who do not understand what futures trading is. But this will not happen to them, as they are more fortunate and know more about margin trading.

That's true, it's overconfidence.

Odd of winning in leverage trade is sometime lesser than we imagined, manipulation can always happen. The market squeezing liquidity is not a new thing it happens on every timeframe.
It's a losing game for most, only informed veteran can make it through and even they don't consistently make profit.

[LogitechMouse]

I don't understand why people choose to trade with high leverage when they know our prediction is only 50% right and the other is wrong because the market can disappoint us when we least expected. Anyone trading with leverage is gambling with a little touch of our skills and knowledge helping us make our prediction to be a little bit correct.

I'm thinking of 2 reasons as to why:
1. They want to make money as quickly as possible, and the only way for them is through increasing the number of leverage.
2. They are just simply way too confident with their analysis and entered at a high leverage. Can't blame them since it's their money.

So you're saying that leverage trading = gambling then? I don't see the logic why many people are thinking like leverage trading is equals to gambling. Yes, both has risks, but in leverage trading, you can mitigate it in many ways like putting a stop-loss when your analysis is wrong, or having more knowledge that would help you in analyzing the market. In gambling, if you lose, you lose. You can analyze maybe when it comes to sports bets, but in casino games? Analysis is just pretty much useless.

There's no one that can stay consistent with victory when trading leverage hence noone can say they have perfected future trading like how people say for spot trading and they won't be lying. The similarities between trading and gambling isn't big and when you decide to go add more risk to it then what you're doing is gambling.

There really is no consistent profitability when it comes to trading, but there's a thing called "making more than you lose", and that's what makes traders profitable. Professional traders loses still, and that's part of gambling, but what's important is they're making more than they lose. The term "perfect" is pretty much irrelevant when it comes to trading because there's no such thing as "perfect strategy" that's existing. What only exists are "traders who make more money that they lose".

I respect your opinion (as I am with others), but we have different perspective when it comes to trading and gambling.

[bullbandit9]

It should be illegal for exchanges to advertise this feature for new users. I often see different promotions if you join the leverage trading system, like free bonus balance or test balance.

I don't understand why people choose to trade with high leverage when they know our prediction is only 50% right and the other is wrong because the market can disappoint us when we least expected. Anyone trading with leverage is gambling with a little touch of our skills and knowledge helping us make our prediction to be a little bit correct.

I'm thinking of 2 reasons as to why:
1. They want to make money as quickly as possible, and the only way for them is through increasing the number of leverage.
2. They are just simply way too confident with their analysis and entered at a high leverage. Can't blame them since it's their money.

The thing is that it does not work. The only people who make money on leverage are those who are able to manipulate the market price, and those that sometimes get lucky. Leverage trading is actually worse than many types of gambling because the odds can not be calculated. Market conditions could be great, and you may open a long position correctly, but it can be flash liquidated in a second by someone manipulating news outlets. Unpredictable, and because of that much worse than gambling.

[LogitechMouse]

It should be illegal for exchanges to advertise this feature for new users. I often see different promotions if you join the leverage trading system, like free bonus balance or test balance.

It's easy to say "this" and "that". It's easy to complain when we see things badly.
Now that you said that it's illegal, can you please share here how can you advertise it where you can exclude new members?

Take note that these exchanges are promoting their own BUSINESS, and if they don't need to exclude new users from using this feature because at the end of the day, it's their decision to do futures trading, not the exchange. They can advertise, and you can just completely ignore it if you feel that you will lose money doing it.

I'm thinking of 2 reasons as to why:
1. They want to make money as quickly as possible, and the only way for them is through increasing the number of leverage.
2. They are just simply way too confident with their analysis and entered at a high leverage. Can't blame them since it's their money.

The thing is that it does not work. The only people who make money on leverage are those who are able to manipulate the market price, and those that sometimes get lucky. Leverage trading is actually worse than many types of gambling because the odds can not be calculated. Market conditions could be great, and you may open a long position correctly, but it can be flash liquidated in a second by someone manipulating news outlets. Unpredictable, and because of that much worse than gambling.

It's your opinion and there's nothing wrong with it.
That's why trading is a game of "PROBABILITIES", and with regards to the unpredictable part, that's why there's a thing called "stop-loss" where if your prediction is wrong, you will not lose your money COMPLETELY.

I'm not disagreeing with what you said since it's your opinion, but I don't agree with it as well. I don't see leverage trading as gambling as they have many differences. Yes, you can liquidate in an instant in futures trading, and there's a way for us to mitigate it. In gambling, if you put your money on a single bet, unless you can cash it out early, there's no other way for you to recover the money and you will lose it completely. Market manipulators might make some profit. Lucky traders might make some profit, but also include those professional traders out there that are also making money off of trading.