Are CFDs Actually Just Gambling?
Seriously though isn't the CFD broker just the house?
Are CFDs Actually Just Gambling?
deme on 18/10/2021 - 13:50
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Can they actually go after a random group of people buying shares in a certain company, and then selling them? Can't see that happening.
If they are conspiring to manipulate the market, it is against the law. Proving it will be the trick, of course.
no that's not possible when big brother is watching everything :)
Shoulda used Signal :P
It depends on the instrument and the broker. For commission-based share CFDs, the buy and sell prices should match the price of the underlying market. For index CFDs or anything with a spread set by the broker, the broker could get up to all sorts of tricks.
In gambling the house always wins over the long period. In investments the broker always gets his/her cut on the way up and then again on the way down.
Yes. Don't do it. The leverage means it's so easy to go broke!
Using leverage is a choice, a tool to manage risk and not unique to CFD.
Any asset that is worth trading can be leveraged.
CFD is a financial instrument used to speculate on assets without owning the underlying asset. It's just another financial tool for people to make or lose money.
I personally believe CFD's are cool, think it this way if you borrow unmoving /slow stock (which highly possible in AU market) your cash will be caught up while all the other good stock flowing out of eyes, and yes it could lead to gambling if your greed is too high and decisions too narrow.
Yeps, they basically are, though I am sure some would argue there are "technical" differences. People are often quick to label crypto as risky, volatile, etc.. but the truth is products like CFDs and forex trading have been around for ages and can be just as risky and volatile.
No they haven't been. CFDs were invented in 90s
it was just a figure of speech dude. The main point is about risk and volatility.
But my question is: is it gambling?
Traditional Securities are nothing like CFDs
Forex is troll. At least stocks on the whole tend to trend up, with obviously some big losers and winners. But for the average joe forex is just a bait, no matter what YouTube gurus tell you about their strategy.
They say individual stocks are already the intrstrument of choice for high risk tolerance individuals , CFDs and options are for the experts.
Main winners are the online stock brokers which always get a cut from this general increase in interest about finance by the public. Guaranteed profit everytime someone clicks a button, just throw the IT guys a few bucks.
No, CFD'S are not gambling, they are Leveraged Gambling.
There are plenty of people that trade CFD without the leverage.
CFD allows for leverage as an option but it's not a requirement.
I didn't know that. In that case what's the difference between CFD trading and normal trading?
CFD's are considered investing in Australia but gambling in the UK. Therefore the tax implications are different. That's the basics.
This is wrong. The taxation of CFDs depends on whether it's for gambling or trading.
Eg. If you place a few bets it's tax free but also your losses are not deductable.
But if your activity is more like trading then its taxable.
lots people say the whole market stock trading shares is gambling.
then,
there was news few days ago about this group of people on telegram doing "pump and dump".
https://www.news.com.au/finance/money/investing/we-can-see-g…