SAMCO Securities Takes a Stand for Traders
Most analysts and experts view this as an optimistic sign. After all, increased individual investor activity in the markets — particularly in volatile segments like the options and futures market — may indicate more disposable capital in the hands of the average Indian trader.
However, a parallel narrative runs alongside this favourable development — where traders are often perceived (and misunderstood) as gamblers who are only looking for an opportunity to earn a quick buck.
This may be true for a small margin of traders, who are mostly beginners with little to no awareness of the science behind stock and security trading. But for the vast majority of traders who are committed to the practice of studying the markets and making calculated transactions, this stigma is a cross they have to unfairly bear.
What Drives the Misconception that Options Trading = Gambling
Options trading is frequently misunderstood by the general public, and this perception stems from a variety of reasons. Primarily, the complex nature of options and the high volatility associated with them can lead to quick, significant losses or gains.
Another factor is the short-term trading strategies often employed in options trading.
Nilesh Sharma, President & ED at SAMCO Securities, pinpoints other crucial factors driving such myths about the calculated science of options trading.
“The terminology used in options trading also contributes to its gambling-like image. Terms such as ‘betting,’ ‘speculating,’ or ‘playing the market’ are commonly used in trading circles. This language naturally evokes gambling connotations, making it easy for the uninitiated to draw parallels between the two activities.
It also doesn’t help that the portrayal of options trading in
