Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Is investing in derivatives the same as gambling?

0
10 Posted

Is investing in derivatives the same as gambling?

0

No, investing in derivatives is not the same as gambling. It is a financial transaction that, just like any other financial transaction, carries risk. Derivative contracts are as a tool to transfer risk. By transferring risk from a risk averse party to another party that is less risk averse, both parties can benefit.

Related Questions

What is your question?

*Sadly, we had to bring back ads too. Hopefully more targeted.