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Currency speculation |
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Currency speculationTo buy or sell a currency in anticipation of its appreciation or depreciation respectively, the intent being to make a profit or avoid a loss. See speculation.Similar MatchesSpeculationSpeculationPurchasing risky investments that present the possibility of large profits, but also pose a higher-than-average possibility of loss. A profitable strategy over the long term if undertaken by professionals who hedge their portfolios to control the amount of risk. Stabilizing speculationStabilizing speculationSpeculation that decreases the movements of the price in the market where the speculation occurs. See destabilizing speculation. Freedman (1953) provided a classic argument that speculation on a floating exchange rate would be stabilizing. SpeculationSpeculationThe buying and/or selling of securities, commodities, currencies etc with a view to making relatively quick profits as opposed to long term investment. This type of trading is particularly prevalent in markets such as commodity futures and options. Destabilizing speculationDestabilizing speculationSpeculation that increases the movements of the price in the market where the speculation occurs. Movement may be defined by amplitude, frequency, or some other measure. See stabilizing speculation. SpeculationSpeculationThe purchase or sale of an asset (or acquisition otherwise of an open position) in hopes that its price will rise or fall respectively, in order to make a profit. See destabilizing speculation and stabilizing speculation. |
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