Will playing contract trading or leveraged trading constitute gambling?
Recently, I saw a message on Weibo saying that a KOL in the currency circle was investigated and released on bail for suspected involvement in the online gambling case of the BiKe exchange.
Then the blogger also reminded that: Perpetual contracts are defined as online gambling, and participating in transactions will be suspected of gambling and will be criminally detained, and in serious cases, they will be sentenced to fixed-term imprisonment...
Is this really the case?
Let's talk about the BiKe exchange first. This BiKe was founded in 2018 and is still operating after the "9.24" ban was issued in mainland China. It is an illegal exchange.
Putting aside this illegal exchange, will playing contracts or leverage in a regular exchange constitute gambling?
The conclusion is of course not. First of all, perpetual contracts are a kind of encrypted futures derivatives. The future profit and loss results of the contract correspond to the real market fluctuations (rise and fall) of virtual currencies. It is not a simple and crude profit or loss, and you can also set stop profit and stop loss functions.
Different from "betting on size and winning or losing", the gambling crime of buying the wrong principal belongs to the dealer. Therefore, playing perpetual contracts or using leverage does not constitute gambling.
However, the risk of contracts is still very high. For ordinary investors, it is very easy to lose all the principal. As the saying goes: cherish life and stay away from contracts.