Is Options trading gambling? Well, it is Not

Posted on 23rd March 2018
Is Options trading gambling? Well, it is Not

Conclusions and interpretations are easily derived when people lack a clear understanding of the subject and are often mislead with the wrong ideas and comments. One such highly speculated topic is Options trading, raising the question whether option trading is actually trading or gambling?

  • Options trading is perfectly legal and it is being practiced widely by people who believe in systematic trading & coherent strategies. Yet there are some critics who would have never put in the effort to understand the real picture and get carried away by false statements, thereby spreading their wrong notion. An activity of gambling involves random risks with no clear idea of what the outcome would be. Whereas options trading requires planned strategies, educated decisions which would give the investor an idea of what he’s putting himself into.

  • Options trading is all about deciding whether a commodity’s price will rise or fall within a certain period of time. You either win or lose when the timeframe ends and you earn profits accordingly. Getting to know about the markets, making decisions based on news outbreak and following planned strategies could improve your chances of predicting the market and winning trades.

  • You should remember that there are risks involved in any form of investment and there are no certain ways to rule them out. The short timeframe nature of the trade could be quite risky because of the volatile markets. But on the positive side, an accurate prediction would result in a quick profit.

  • Making consistent profits requires a lot of commitment, dedication and a solid investment strategy. The only way you can actually win trades in options trading is by investing the time to understand the markets, making informed decisions and following a strict disciplined routine. If you’ve got it all right, then yes, you could be making profits by then. So, it is quite clear that options trading is not gambling but an opportunity to reduce your risks and help broaden your profits.

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