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Speculation

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Speculation
Investment Dictionary - Speculation
Speculation refers to the selection of high risk investments with the aim to profit from the anticipated movement of prices.

 


Speculation is the buying, holding, and selling of stocks, commodities, currencies, collectibles, real estate, or any valuable thing to profit from fluctuations in its price as opposed to buying it for use or for income - dividends, rent etc.

Definition
Speculation
The act of knowingly investing funds in a venture carrying higher-than-average risks in the hope of making above-average profits. Speculators expect to make a profit because of price changes.
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Hedging and speculation are two methods used when trading in any financial market.

Global Futures Speculation Index
This indicator is calculated by simply adding the number of the weekly CBOE equity calls and puts together and dividing the result by the weekly NYSE volume.
Past performance does not guarantee future results! ...

Amazon Takes a Hit on Speculations of Loss, But Some See Long-Term Gain
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Speculation VS investment - Day trading VS occasional position
It is very important that the individual wanting to trade foreign exchange be aware of the very marked difference between speculation and investment.

Speculation and DIG DUG
From an investment standpoint, speculation is the process of selecting investments that are expected to carry with them greater risks, with the hope of greater rewards.

Speculation - An attempt to profit on the fluctuation in prices for currencies and other investment securities.
The Bretton Woods Accord - Courting Controversy ...

Speculation against irrational market manipulators, usually governments or cartels. The spectacle of governments vainly attempting to maintain indefensible exchange-rates is always pathetic, and would be laughable were it not so expensive.

Speculation
The process of selecting a high-risk investment to profit from an anticipated price movement.
Sponsor ...

Speculation: An investment objective of Speculation indicates you seek a significant increase in the principal value of your investments and are willing to accept a corresponding greater degree of risk by investing in securities that have ...

Speculation Index
A ratio comparing the volume of trades upon the American Stock Exchange and the NYSE.
Spread ...

Speculation: Currency speculators and the influence they cause to the currencies depreciations are widely and regularly disputed.

Speculation
It is estimated that between 60 to 80 per cent of NDF trading is speculative.

Speculation
The employment of funds by a speculator. Safety of principal is a secondary factor. (see Investment)
Speculator ...

Speculation
One important thing to note about the forex market is that while commercial and financial transactions are part of trading volume, most currency trading is based on speculation.

Speculation
The process of buying investment vehicles in which the future value and level of expected earnings are highly uncertain.
Stock Splits ...

Speculation period
Period during which gains from the private sale of securities are taxable. In Germany, the speculation period for securities is 12 months.

Speculation
High-risk investment practices. Speculators take above-average risks - buying something on the basis of its potential selling price - in expectation of gaining above-average returns, generally during a short time period.

Speculation
Purchasing risky investments that present the possibility of large profits, but also pose a higher-than-average possibility of loss.

# Speculation is a business. Develop a business plan.
# Survive to hang around for the big moves.
# Don't blame the market for your losses. You are the sole reason for losses.

[edit] Speculation
The surge in oil prices in the past several years has led some commentators to argue that at least some of the rise is due to speculation in the futures markets.[9] For instance, James K.

Speculation in futures contracts, however, is clearly not appropriate for everyone. Just as it is possible to realize substantial profits in a short period of time, it is also possible to incur substantial losses in a short period of time.

Speculation about that issue ended on Nov. 2, though there's never been any need to speculate about which politician is most feared by Wall Street - New York State Attorney General Eliot Spitzer gets the vote hands down.

Speculation as it pertains to investing is most beneficial to short term traders. Short term traders typically hold onto shares for a very short period of time. Many fall into the category of day trading and swing trading and they can work from home.

Speculation in pork bellies futures trading is considered to be a relatively stable component of an investment portfolio, as well as one that can yield a high profit if one has the vision to buy and sell at the proper times.

Speculation I would define as much more focused on the price action of the stock you buy. You are not looking to the asset itself. The real test of what you're doing is whether you care whether markets are open.

SPECULATION - Buying or selling in hopes of making a profit.
SPECULATOR - One who is interested in profiting from a price change in a commodity futures contract.

With speculation riding high as the bull market in oil matured; the leveraged oil etf became a popular choice for investors who believed that there was no risk in buying oil.

See: Speculation
High Grade Bond
Bond rated "AAA" or "AA" by Moody's or Standard & Poor's rating services.
See: Debt Instrument; Investment Grade; Rating; Risk ...

From a speculation viewpoint, it is beneficial to think from the perspective of the first currency in the pair (the base currency).

Practical Speculations
Appendix: Sample Code
The following code can be cut and pasted into TradeStation and used as a back-testing template.

RGE: Great Speculations - Why China Is So Bubble-Friendly
By: Investment Postcards from Cape Town
Publish Date: Monday, April 11, 2011
Sector(s): China ...

Currency speculation
On Black Wednesday (September 16, 1992), Soros's fund sold short more than $10 billion worth of pounds sterling[citation needed], ...

Expectations and speculation:
Markets anticipate events. Speculation on, say, the future rate of inflation may be enough to move the exchange rate - long before the actual trend becomes apparent.

speculation
Penny stocks are extremely risky and often used by fraud artists to scam people out of their money using techniques such as pump and dump.

Currency trading is speculation, plain and simple. You're speculating on the value of one currency versus another, with the sole intent of making a profit.

Since when did wild speculation become a substitute for sound investment?

but the natural processes of the market, probably bolstered by strong protectionist measures around the world that finally deflate the bubble, because the government has always been extremely cautious about tightening and reining in speculation, ...

Application: This is mainly a vehicle for speculation, because it is difficult to name something that it hedges. Pricing: The payoff is path dependent, and the most obvious way to price it is with Monte Carlo simulation.

Forex Derivatives - A look at forex derivatives, forex financial contracts and an explanation of a few types of foreign currency derivatives, namely speculation and hedging.

Its successful use as an aid in speculation requires serious study and the summing up of evidence must be impartial. The wish must never be allowed to father the though' (Rhea, Dow Theory, Pg 12).

When financial institutions lend for consumer purchases such as cars, boats or homes, or for speculations such as the purchase of stock certificates, no production effort is tied to the loan.

venture A business enterprise or speculation in which something is risked in the hope of profit venture capital VC. Funds allocated for firms and small businesses entering the market with...

Trading in stocks on the stock market is typically driven by speculation, based on company news and performance factors. There are two ways to try and find the market value of a stock.

Speculation Index: Historically, the ratio of the American Stock Exchange volume to that of the New York Stock Exchange.

The difference between investment and speculation is considered by some to be an extremely important distinction.

Though the profitable speculation depends on accurate price rate forecasting, in reality it is very hard to achieve.

Geographic Risk - Geographic risk typically involves investment speculation in the economies and industries of foreign countries.

More significantly, however, investors are often part of speculation. This means that they buy stock in the hopes that it will increase in profit.

These instruments are used either for currency speculation and arbitrage or for hedging foreign exchange risk.

Ponzi schemes are a type of illegal pyramid scheme named for Charles Ponzi, who duped thousands of New England residents into investing in a postage stamp speculation scheme back in the 1920s.

Hamilton characterized secondary moves as a necessary phenomenon to combat excessive speculation. Corrections and counter moves kept speculators in check and added a healthy dose of guesswork to market movements.

belgium and south africa dual exchange rate market to prevent speculation from proffiting devaluation
us dollar lifetime movement ...

There is nothing wrong with speculation. As investors we have to speculate about the future, but it is essential that we know when we are crossing the line between fact and speculation (say fantasy).

With the advances in internet technology, plus the industry's unique leveraging options, more and more individual traders are getting involved in the market for the purposes of speculation.

Successful traders draw intuitively upon these bilateral market mechanics as they master the art of speculation.

The former group can use them for speculation on the direction of interest rates or default rates.

Speculation constitutes the 3rd phase. They hear the riches that their friends are making, and, they, too, start buying, propelling the market ever higher-much higher than can be justified by fundamentals-until the market can go no higher, ...

See also: Market, Trading, Stock, Investment, Profit