Trading Comparisons FAQ

ISN'T [SPORTS] TRADING JUST ANOTHER FORM OF GAMBLING?
AREN'T SPORTS TRADING EXCHANGES SPORTSBOOKS?
HOW RISKY IS TRADING AND COMPARED TO SPORTS BETTING?
WHY TRADE IN SPORTS ISSUES RATHER THAN BET ON SPORTS?
IS SPORTS TRADING MORE PROFITABLE THAN SPORTS BETTING?
HOW DO I GET STARTED IN TRADING OF SPORTS ISSUES?

ISN'T [SPORTS] TRADING JUST ANOTHER FORM OF GAMBLING?

Any form of investment carries risk (loss of capital) and therefore can be regarded as a gamble to some degree.

Gambling by definition is the act or undertaking of placing a bet or wager on an uncertain outcome in the hope that the risk taken yields an advantage or benefit.

By investing in sports teams (over a long term basis) rather than wagering on a single event, risk is greatly reduced and therefore can not be considered gambling.

AREN'T SPORTS TRADING EXCHANGES SPORTSBOOKS?

Sportbooks are run by bookmakers and odds on offer for events are set by the bookmaker based on their own opinion. You can not post your own odds so you have to accept what is on offer to wager.

A financial trading exchange is governed by market forces (i.e. supply and demand) by other traders whereby prices for stocks are exchanged by parties in agreement. Therefore, sports' trading is completely different to a sports betting operation.

HOW RISKY IS TRADING AND COMPARED TO SPORTS BETTING?

The most stark difference between trading in sports issues and sports betting is the complete loss of sports bettor's wager should the outcome not be correctly wagered; the sports trader can only lose the entire investment in a stock if the stock value falls to zero (and this is quite rare). The sports trader can potentially offset losses in stock value (from purchase price) by dividend income.

It therefore can be stated that sports betting carries much higher risk compared to sports trading.

WHY TRADE IN SPORTS ISSUES RATHER THAN BET ON SPORTS?

There are two major reasons why the sports trader will be better off than the sports bettor:

Capital growth - The sports trader is investing in a capital asset and therefore can profit from any increase in capital value from the time of any shareholding. Of course the value of the asset will fluctuate due to market forces and can even go lower than the purchase price but it is unlikely to reach zero (i.e. only in exceptionally rare circumstances will the stock have no value).

The sports bettor can only profit from wagering correctly on a certain result of an event but bet incorrectly on a result and the entire wager is fortified (lost). The sports bettor also has no means to take advantage of capital appreciation of an asset in sports betting.

Dividend income - The sports trader being a shareholder in a capital asset, will receive income from dividend payouts. This is ongoing income for the sports investor for duration of any ownership in the asset. Dividend income does not apply to sports betting.

In a conventional sense, you can literally profit from sports trading by doing absolutely nothing. After purchasing shares in stocks, you can sit back with your feet up and receive dividend income (and be in profit from capital appreciation).

The sports bettor must be involved and place a bet to receive potential profit. Of course, it's in the sports traders' interest to monitor their portfolios, even in a passive manner but this simplistic comparison still applies.

IS SPORTS TRADING MORE PROFITABLE THAN SPORTS BETTING?

This is naturally a debatable point and only determined in comparison by experienced sports traders and sports bettors but given the fact the sports bettor is commonly staking a wager at complete risk on an individual event and the sports trader is riding the performance of a team out over a longer term and collecting dividend income along the way and without the unlikely possibility of complete risk, it is logically concluded that sports trading offers far lower risk with secure income over the longer term and thus, out performing conventional sports betting.

HOW DO I GET STARTED IN TRADING OF SPORTS ISSUES?

Visit AllSportsMarket to open a free account here and you can claim a free $5 bonus (no deposit is necessary to claim your free $5 bonus!).

Once your account is active, you will get a better idea of the functionality of theASM trading exchange.

Although you will be able to buy stocks with your bonus money, you will likely find limited opportunities to purchase any stocks with insufficient funds. You can however, top up your account by making a deposit (only $25 minimum deposit) to exploit greater trading opportunities.