Spread betting or spread trading: is it gambling or investing?

This is probably one of the most common debates heard when people start to discuss the world of spread betting or spread trading, depending which term you prefer.

The answer to whether or not spread betting is gambling or investing does depend upon your viewpoint and your attitude. In many ways, if you treat spread betting like placing a simple bet at the bookies or gambling then you will lose money. However, if you treat it seriously, as many professionals do, then it is possible to make a living from spread trading because it does involve a level of skill or knowledge.

As a beginner, it is easy to become emotionally attached to a trade or bet so only spread bet with your head not your heart. Remember, if you cannot say why you placed your trade then you are indeed gambling and should not be doing it.

Financial spread trading can be exciting and if you have the sort of addictive personality that likes to play a game of poker and dreams of winning the lottery then it may not be the right move for you because it is possible to become over keen and search for the smallest sign that there is a trade to open. If used incorrectly then spread betting can lose you a lot of money, but in the right hands there is a lot of money to be made.