Post
Topic
Board Gambling discussion
Re: Between futures trading and gambling
by
Blitzboy
on 08/08/2023, 05:32:21 UTC
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That is a very optimistic approach and in a perfect world it would be a great thing to help everybody with giving them a talk about the consequences of their action and that their current path will likely lead to large financial losses. Unfortunately, we are not living in such a world, people are very reluctant to take advise from strangers and will probably not trust us, even if we are honest and only want to help. The difference between futures trading and gambling is the access to the two. Everybody who is 18 in my country can enter a casino and start gambling if they have the money, whereas starting to buy futures you need to setup a special account with the bank. I remember before being able to trade futures at my bank I had to fill out a questionnaire about my previous trading experience and my knowledge. Also, in a talk with the bank employee he showed me again that the losses from futures trading can be much higher than when trading stocks. So, there are special regulatory requirements for futures trading to protect people from themselves, in gambling such a thing doesn't exist. The problem is that futures trading usually involved leverage, which can lead to financial problems, in the casino we usually just gamble with our own money and if we lose it we have to stop. Having more protection for the customer is a good thing in futures trading, but in gambling there it’s not really necessary.


Optimism, futures, casinos, questionnaires, banks, talks with employees, losses, leverage, regulations, and protections. And if I were to put it all into a blender and press "start," would it blend into a smooth financial shake or end up a lumpy disaster?

Your point about futures trading needing special regulatory requirements and the distinct accessibility of gambling is like putting your finger on a seesaw and expecting it to balance. Maybe, but not quite. Even though theres a questionnaire for futures, and it feels special, does that make it safer? Maybe you just felt special.

Interestingly, the aspect of losses being more controllable in casinos due to gambling only with one's own money is quite... unique. You cant lose more money than you have at a casino, except for when you can, by using credit. And banks? Well, they're just friendly, asking questions about your experience. Surely, not leveraging their position to maximize profits.