Leverage trading is nothing but gambling

[Moreno233]

Leverage trading is not what I’m very familiar with but base on how it is been run, we can’t completely compare it to gambling or say that it is another form of gambling. ...

Trading with leverage is more similar to trading with credit facilities such as traditional banks and has nothing to do with casinos. In both cases, your borrowed funds will be secured by collateral, which in any case will be able to compensate for the non-repayment of the loan.

You have a better analogy here regarding leverage trading. Leverage trading is just the same as other trading but the only difference is that the trader is trading with borrowed funds, the danger of which is the increase in the risk as well as the potential reward. In other words, as the reward for leverage trading increases, so does the risk. The only thing that make people think that leverage trading trading in general is similar to gambling is because of how people lose money. In reality, if you master the skills in trading, you will still be able to make good money from it.

[TastyChillySauce00]

Trading with leverage is more similar to trading with credit facilities such as traditional banks and has nothing to do with casinos. In both cases, your borrowed funds will be secured by collateral, which in any case will be able to compensate for the non-repayment of the loan.

You have a better analogy here regarding leverage trading. Leverage trading is just the same as other trading but the only difference is that the trader is trading with borrowed funds, the danger of which is the increase in the risk as well as the potential reward. In other words, as the reward for leverage trading increases, so does the risk. The only thing that make people think that leverage trading trading in general is similar to gambling is because of how people lose money. In reality, if you master the skills in trading, you will still be able to make good money from it.

the only thing that make leveraged trading worse than traditional way of borrowing money from bank for trading is the fact that when your margin can't mantain the position size you get liquidated instantly, while with traditional loan you need to pay the debt at fixed date so you can tolerate floating loss and unrealized negative PnL.

so no wonder people are so afraid of leveraged trading and some might even lose so much from it, the lenders are playing a winning game.

[Cryptmuster]

This is a very complicated type of trading with a very low success rate, so I agree that in this case the trader should only hope for luck. But in the long term it is almost impossible to stay with a profit on futures, I have long ago abandoned attempts to trade with leverage, several failures were enough to understand that in this type of trading I will not be able to achieve profit. In addition to the fact that you need to guess the market movement, most often you also need to close trades quickly enough when they are in profit, I do not like this approach.

[nelson4lov]

But there is built-in to forex trading as well although it is denominated in lots. It is not gambling if you know what you're doing. If you don't know anything about trading and you just open up an exchange or a terminal to trade then you pick an asset and slap high leverage on it then that's gambling. I have seen someone that used leverage on Bitcoin as an investment strategy to increase his overall investment size while managing risk properly.

The truth is that it depends how it is used.

[Zadicar]

But there is built-in to forex trading as well although it is denominated in lots. It is not gambling if you know what you're doing. If you don't know anything about trading and you just open up an exchange or a terminal to trade then you pick an asset and slap high leverage on it then that's gambling. I have seen someone that used leverage on Bitcoin as an investment strategy to increase his overall investment size while managing risk properly.

The truth is that it depends how it is used.

I do agree into this sentiment on which you wouldnt really be finding yourself doing gambling if you do really just that know on what you are doing. Somehow if we do speak about the risks % of futures trading then this is far more riskier when dealing up with spot on which just make it sure that you are pretty doing well on spot before switching or touching up futures trading. Actually its not that bad to test it out or get involved with, on which it will really be just that basing up into your risks tolerance on which we know that not all people will really be having that the same level when it comes into this situation. So it will really be that up to you whether you can handle it out or you would really be that staying into where you've been hanging on with. People do usually make out that immediate shift when they do saw someone who do make out that huge money without even thinking about on the risks level.

[|MINER|]

But there is built-in to forex trading as well although it is denominated in lots. It is not gambling if you know what you're doing. If you don't know anything about trading and you just open up an exchange or a terminal to trade then you pick an asset and slap high leverage on it then that's gambling. I have seen someone that used leverage on Bitcoin as an investment strategy to increase his overall investment size while managing risk properly.

The truth is that it depends how it is used.

In this case I will say that even if anyone want do the spot trading without having proper analysis knowledge like the technical analysis and the fundamental analysis then I will say them even they were doing the spotted in they were mainly doing the gambling.
And those who do leverage trading need to have even better analysis skills. If someone goes into leverage trading without analysis knowledge and loses, they will say that it is nothing but gambling.

I have even seen people who invest in bitcoin but lack proper knowledge, but when the market goes down, they panic and sell their funds and later blame it on the fact that investing in bitcoin is also a gamble. I would say that they didn't actually say anything wrong because those who come into this world to invest without knowledge are actually gambling in terms of investment.

[tvplus006]

In this case I will say that even if anyone want do the spot trading without having proper analysis knowledge like the technical analysis and the fundamental analysis then I will say them even they were doing the spotted in they were mainly doing the gambling...

Anyone who trades on the spot market has a chance to close their order with profit after a while, and it only takes patience. But those who trade using leverage may not get a second chance, as their position will be liquidated by the exchange.

[WeedGoW]

For a while now I have been reading traders' reviews on top exchanges and getting involved in discussions as regards various coins, their performance and market dominance coupled with how much loses have been incurred by traders and what form of trading makes the loss such an amount.


My finding points to one truth about leverage trading in crypto trading and it is no difference with gambling since whatever position you hold when the market goes against your prediction you get your money liquidated, so tell me what difference it is with gambling where you also depend on luck the win.

Yes leverage trading is a kind of gambling. You’re right about the opinion of many traders, as much as the tide of Liverst trading, is the main idea of trading liverst like tide, you can treasure much more money than your own capital but if the market goes against your eastern side, it can lead you to the pool amount loss and this loss can reduce your capital much faster and lower. The future of Liverst Trading is certain in terms of trade and there is high risk in whatever you do next to. It’s a kind of serious level gambling. So if you come to this training without having full knowledge, you will definitely lose your profile from here.

[2Pizza410000BTC]

For a while now I have been reading traders' reviews on top exchanges and getting involved in discussions as regards various coins, their performance and market dominance coupled with how much loses have been incurred by traders and what form of trading makes the loss such an amount.
My finding points to one truth about leverage trading in crypto trading and it is no difference with gambling since whatever position you hold when the market goes against your prediction you get your money liquidated, so tell me what difference it is with gambling where you also depend on luck the win.

Trading and gambling are two different platforms. If you want to find some similarities between leverage trading and gambling, then some similarities can be found, for example, while gambling, sports sites can rely on some knowledge and analysis, on the other hand, leverage trading also relies on some knowledge, in this case I find some similarities, moreover, I do not find any similarity between the trading platform and the gambling platform. When we do leverage trading, we use 1x 5x 10x 25x .. in trading through our strategy and we can reduce our trading risk a lot.

[wheelz1200]

For a while now I have been reading traders' reviews on top exchanges and getting involved in discussions as regards various coins, their performance and market dominance coupled with how much loses have been incurred by traders and what form of trading makes the loss such an amount.


My finding points to one truth about leverage trading in crypto trading and it is no difference with gambling since whatever position you hold when the market goes against your prediction you get your money liquidated, so tell me what difference it is with gambling where you also depend on luck the win.

Trading crypto or any volitile market is always going to be considered gambling.  All it takes is one green or red candle to get margin called in this game.  Dont get me wrong, people can make some serious money and quick but the large majority of people end up losing money trying to margin trade (gamble).

[Lida93]

Leverage trading is not what I’m very familiar with but base on how it is been run, we can’t completely compare it to gambling or say that it is another form of gambling. ...

Trading with leverage is more similar to trading with credit facilities such as traditional banks and has nothing to do with casinos. In both cases, your borrowed funds will be secured by collateral, which in any case will be able to compensate for the non-repayment of the loan.

You have a better analogy here regarding leverage trading. Leverage trading is just the same as other trading but the only difference is that the trader is trading with borrowed funds, the danger of which is the increase in the risk as well as the potential reward. In other words, as the reward for leverage trading increases, so does the risk. The only thing that make people think that leverage trading trading in general is similar to gambling is because of how people lose money. In reality, if you master the skills in trading, you will still be able to make good money from it.

There are traders that are still getting handsome rewards from the use of leverage trading, and these are those traders who have a wide range of insight of the associated risks and the mechanics. It's a simple logic to catch, that there is an associated risk when you're allowed to trade  with more than what you have in deposit, but It is the increasing rewards that's involved with leveraging that attracts many traders to often engage with leverage trading but very a few do scale through with profit due to the high risk involved.

[Mahanton]

Leverage trading is not what I’m very familiar with but base on how it is been run, we can’t completely compare it to gambling or say that it is another form of gambling. ...

Trading with leverage is more similar to trading with credit facilities such as traditional banks and has nothing to do with casinos. In both cases, your borrowed funds will be secured by collateral, which in any case will be able to compensate for the non-repayment of the loan.

You have a better analogy here regarding leverage trading. Leverage trading is just the same as other trading but the only difference is that the trader is trading with borrowed funds, the danger of which is the increase in the risk as well as the potential reward. In other words, as the reward for leverage trading increases, so does the risk. The only thing that make people think that leverage trading trading in general is similar to gambling is because of how people lose money. In reality, if you master the skills in trading, you will still be able to make good money from it.

There are traders that are still getting handsome rewards from the use of leverage trading, and these are those traders who have a wide range of insight of the associated risks and the mechanics. It's a simple logic to catch, that there is an associated risk when you're allowed to trade  with more than what you have in deposit, but It is the increasing rewards that's involved with leveraging that attracts many traders to often engage with leverage trading but very a few do scale through with profit due to the high risk involved.

And this would be the main reason on why people are really that getting a fan on dealing up with these things accordingly on which they do really saw on what are the opportunities of having that potential big profit. On the time or moment that they fixate out their minds in regarding about into such condition then this is the time or moment that they will really be having that kind of approach on which they've been believing that they can make money with it. Futures trading potential gains are indeed interesting on which at the time or moment that you do able to make that good trading analysis and good position with your trades then it will really be that giving out that kind of outcomes or results on which it is far more better when you are doing with spot trading. This is why its really that lots of people are interested with it.
I do agree somehow into the point that it is really that becoming like gambling because of the leverage, small movements will be neither resulting a huge amount of profits and on the same time that huge amount on getting that liquidated on which this will really be that something that commonly happen on a certain individual. Therefore, it will really be that situational into this aspect on whether they are really that able to bare up with the risks and accepts it out or just being getting blinded with those potential of earning that much more bigger?

[hyudien]

My finding points to one truth about leverage trading in crypto trading and it is no difference with gambling since whatever position you hold when the market goes against your prediction you get your money liquidated, so tell me what difference it is with gambling where you also depend on luck the win.

There is nothing wrong in saying that Leverage trading is the same as gambling because in fact most traders try to chase a short time and guess the price. Putting money into a container as collateral and when you lose / choose the wrong position little by little it is drained. I will not deny and so far recommend anyone to trade spot because there are at least techniques, methods or strategies that can be learned.

[mindrust]

My finding points to one truth about leverage trading in crypto trading and it is no difference with gambling since whatever position you hold when the market goes against your prediction you get your money liquidated, so tell me what difference it is with gambling where you also depend on luck the win.

There is nothing wrong in saying that Leverage trading is the same as gambling because in fact most traders try to chase a short time and guess the price. Putting money into a container as collateral and when you lose / choose the wrong position little by little it is drained. I will not deny and so far recommend anyone to trade spot because there are at least techniques, methods or strategies that can be learned.

Leverage users are trying to get rich quick. I haven’t seen a single serious investor who is playing with leverage. Let’s say you bought 1 btc from $100k and btc went as low as $50k. You still have 1 btc in this situation. Had you made the same trade using x2 leverage, (longes btc at $100k) it would have wiped you out.

If you make trades on the spot market, at least there is a chance for a recovery which you don’t have with leverage.

[tvplus006]

...Futures trading potential gains are indeed interesting on which at the time or moment that you do able to make that good trading analysis and good position with your trades then it will really be that giving out that kind of outcomes or results on which it is far more better when you are doing with spot trading. This is why its really that lots of people are interested with it...

Since we are talking about a large profit that can be obtained using leverage, it is necessary to remember about the losses, which will also be large if the price moves in the opposite direction to your expectations. Therefore, everyone should decide for themselves whether to use leverage or not.

[tygeade]

And this would be the main reason on why people are really that getting a fan on dealing up with these things accordingly on which they do really saw on what are the opportunities of having that potential big profit. On the time or moment that they fixate out their minds in regarding about into such condition then this is the time or moment that they will really be having that kind of approach on which they've been believing that they can make money with it. Futures trading potential gains are indeed interesting on which at the time or moment that you do able to make that good trading analysis and good position with your trades then it will really be that giving out that kind of outcomes or results on which it is far more better when you are doing with spot trading. This is why its really that lots of people are interested with it.
I do agree somehow into the point that it is really that becoming like gambling because of the leverage, small movements will be neither resulting a huge amount of profits and on the same time that huge amount on getting that liquidated on which this will really be that something that commonly happen on a certain individual. Therefore, it will really be that situational into this aspect on whether they are really that able to bare up with the risks and accepts it out or just being getting blinded with those potential of earning that much more bigger?

Having people who are dealing with plenty of problems on the long run ends up being very careful with what they have. It has to be problem for many who see others making millions from trading when they have so much debt. So they hope to become like those they saw and they want to make money from it as well.

So they set out and try to make money from that way, and thanks to it, they end up getting a greater return, they want to put a few hundred dollars in, get couple thousands out, and pay their debt this way, and reinvest some of it and keep getting richer and richer. They see this being done by others, so they know that it is technically possible. What they do not realize is how hard it is to have this type of profit.

[EarnOnVictor]

My finding points to one truth about leverage trading in crypto trading and it is no difference with gambling since whatever position you hold when the market goes against your prediction you get your money liquidated, so tell me what difference it is with gambling where you also depend on luck the win.

I disagree that leverage in trading can be linked to gambling, no, leverage is a neutral measure at your discretion to either avoid or use. Even if you use the leverage, you are still not gambling if you are a good trader who knows what you are doing. Leverage will increase your risk but also gives you the opportunity to gain more. This calls for extreme care in trading while using it, strict trading rules and management will safe you. No trader who uses high leverage without a tight stop order and good risk/money management is doing it right. What do you expect if not a huge loss?

[|MINER|]

In this case I will say that even if anyone want do the spot trading without having proper analysis knowledge like the technical analysis and the fundamental analysis then I will say them even they were doing the spotted in they were mainly doing the gambling...

Anyone who trades on the spot market has a chance to close their order with profit after a while, and it only takes patience. But those who trade using leverage may not get a second chance, as their position will be liquidated by the exchange.

You are right, I also knew it that the sport market has the chance to close their order or even they could use the stop loss features to refain from the losses I mean from the big losses which cannot be one on the leverage trade.

However, the purpose of my statement is that those who do not know about trading and invest based only on the hype, may face losses in spot trading in highly volatile coins, just like in future trade or leverage trade. And from this perspective, I think that both types of trading are equivalent to gambling for them.

[nelson4lov]

~Snipped

In this case I will say that even if anyone want do the spot trading without having proper analysis knowledge like the technical analysis and the fundamental analysis then I will say them even they were doing the spotted in they were mainly doing the gambling.
And those who do leverage trading need to have even better analysis skills. If someone goes into leverage trading without analysis knowledge and loses, they will say that it is nothing but gambling.

I have even seen people who invest in bitcoin but lack proper knowledge, but when the market goes down, they panic and sell their funds and later blame it on the fact that investing in bitcoin is also a gamble. I would say that they didn't actually say anything wrong because those who come into this world to invest without knowledge are actually gambling in terms of investment.

You have a valid point. However, I can confirm that if someone is only spot trading and focuses on buying bitcoin or any token they have conviction in whenever the price goes down or there's buying opportunities, it isn't gambling—it's called taking risks on high conviction play.

But playing with leverages without actually doing any analysis is outright gambling.

There's actually a fine line between trading and gambling, However, those lines can easily get blurry if one isn't careful.

[LogitechMouse]

For a while now I have been reading traders' reviews on top exchanges and getting involved in discussions as regards various coins, their performance and market dominance coupled with how much loses have been incurred by traders and what form of trading makes the loss such an amount.


My finding points to one truth about leverage trading in crypto trading and it is no difference with gambling since whatever position you hold when the market goes against your prediction you get your money liquidated, so tell me what difference it is with gambling where you also depend on luck the win.

Trading crypto or any volitile market is always going to be considered gambling.  All it takes is one green or red candle to get margin called in this game.  Dont get me wrong, people can make some serious money and quick but the large majority of people end up losing money trying to margin trade (gamble).

Why there are so many people that thinks that trading in crypto is considered as gambling?

Sure it can be if you don't know what you're doing and you're just clicking "Buy Long" or "Buy Short" button out there without any proper strategy at all. This is why there are many successful traders out there because they have a system that they follow, and that makes them profitable. Trading can only be considered as gambling if you don't have a strategy, if you don't have a plan, and if you're entering a position without any proper reason at all. Yes, majority of traders are losing money and that's because they don't have a plan that works for them.

Can I ask a question. What about those expert crypto traders out there that are making huge bucks. Do you consider them as gamblers since they're trading in the crypto market despite having a working strategy?