Differences Between Similar Products
Jul 14, 2011 by shiela
What is the Difference between Gambling and Speculation?
Gambling and speculation are two terms which are easy to differentiate because the meanings are very much unrelated. Gambling is mostly associated with negative connotation because money is involved. Speculation on the other hand can be associated with a more positive meaning because it’s more logical and analytical.
Gambling and speculation may be the same in terms of taking risks. Gambling is a game of chance so you take the risk by betting your money without knowing if you will or not. Take for example in lottery, there are hundreds of possible combinations so by betting your number, there is a lesser chance to win so you just gamble what you bet. Good if you will win the jackpot but if not, your money will not be returned.
Speculation is also taking a risk but then you don’t make instant decisions. You calculate first whether you will be on the advantage side or not. For example, you invest on a stock if you know that for a year, the economy will progress. When you speculate, you also take the risks but then you are weighing the pros and the cons.
Gambling may involve small amount of money while for speculation, huge investment is needed. This is the reason why speculations a skill because if you speculate by mistake, then you will just say goodbye to your money.
In gambling, there are two chances – to win or lose. For speculations, it can always a win-win situation. Gambling uses luck while for speculations, you use sense and skills.
Gambling is usually done in casinos and small-time lotteries while speculation has something to do with the stock market. When you enter the casino, you don’t need anymore to studying how you will win but you just bet your money hoping that good luck will come your way. Speculation is hard work. You need time to study especially in dealing with the stock market. Good decision-making and patient are needed when you speculate but just sheer chance is what you need for gambling,
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