Differences Between Speculation And Gambling  

Speculation and gambling are very similar in their profile. They are both done for profits, and people who are involved in either do not mind taking risks. However, speculation is legal for the most part, and gambling is not.

There are many differences between speculation and gambling and it is difficult to draw parallels at some point.A speculation is trying your luck, and investing your money when the markets are low and selling the investments when they are high. Investment could be currency or shares. Even trading in a share market is a game of speculation. In speculation, one can study the market trends and predict to a certain extent how much profits they can expect out of speculation. For example, if you invest in Euros and would like to sell it at a higher price, you can study the market trends and know if that is going to happen immediately or not. To an extent your money is secure and you get back some amount of your investment if not all, or you may even double your investment. However, in speculation you do not lose your money completely as every currency in the world has some amount of value.

Gambling is a game. One cannot predict how the gambling machine is going to behave. There is no concept of investment in gambling. The risks are much higher than speculation. The possibility is very high that you might lose entire amount you put towards gambling. There are no parameters to measure if you are winning or losing. In gambling you win, you get more money and if you lose, you lose all your money.

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Differences Between Speculation And Gambling




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