 | What is the definition of Speculation?
Speculation is the practice of taking on high risk trades in order to profit from price fluctuations for the short term.
|  | TradersLaboratory decodes Speculation
Market speculation is a risky venture. Speculators do not hold positions for the long term. They aim to enter and exit positions as fast as possible. Speculators aim to make the maximum gain from the smallest of price movements. They do this by leveraging positions so as to maximize the profits they can make from price fluctuations. To explain this better, rather than wait for 20 trading days to gain $1000 from 100 pips in the market, a speculator will aim to make the same amount of money, using a lower number of pips but with a high leverage in a shorter time frame. |
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