Is Futures and Options Trading a gambling?

Futures and options trading share similarities with gambling, but they fundamentally differ in purpose, structure, and risk management. Let’s delve into the nuances:

  1. Derivatives and Real Assets:
  2. Speculation vs. Hedging:
  3. Voluntary vs. Compulsory:
  4. Secondary Market:
  5. Risk and Strategy:
    • Gambling lacks strategy; luck dominates.
    • In futures and options, individuals set rules:
  6. Example:

In summary, while speculative trading can resemble gambling, futures and options empower individuals to make informed decisions, manage risk, and participate in markets strategically. It’s not a roll of the dice; it’s a calculated play.

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