Comment Re:Yet gambling on the stock market is just fine (Score 1) 55
The world is a complicated place. Broad categories like the ones I gave will cover a lot of common things, but can't cover everything. Nothing is black-and-white, there are always shades of gray.
Futures and Options qualify as "derivatives" from real assets. They DO sit in a middle ground so they get classified as "speculation" which isn't quite investing and isn't quite gambling. Most of the time for most people, it doesn't matter. Investing is how people come to own the means of production, which is a foundation of wealth-building in a capitalist society. Someone who never invests (in good old-fashioned stocks) because they think it is "gambling" is seriously mismanaging their money and may remain trapped in poverty their entire lives because of it. Someone who spends a lot of money on lottery tickets regularly and considers that "investing" is going to wind up in a similar position.
The world of Futures and Options and other fanciness is for people who want to take their financial knowledge and engagement to the next level. It's a whole step beyond the distinction and advice that I was originally talking about. A veritable subject change.
Incidentally, CFDs and hedge betting have little-to-no institutional hedging, so they function a lot more like gambling (even more so than derivatives). These are generally private contracts with a broker, making them structurally more similar to the operation of a casino. I read that in UK and Ireland, they ARE legally classified as gambling, and generally not legal in the USA. So, despite their unique structure, they fall pretty firmly into the "gambling" category. And, as I said before, they are simply not relevant to ordinary people who just want to be financially healthy, put their kids through school and save up for retirement, so they don't need to complicate the conversation.