speculative trading
Risky financial wagering
Speculative trading is buying and selling financial instruments—stocks, currencies, commodities, derivatives—primarily to profit from price fluctuations rather than from the underlying asset's long-term value or income.
The speculator bets on short-term movements, accepting higher risk for potentially higher returns: He lost everything in speculative trading on oil futures.
Distinguished from investing, which focuses on fundamentals and longer time horizons.
- optionsAvailable courses of action
- derivativesThings derived from another
- herd mentalityTendency to follow crowds
- arbitrageExploiting price discrepancies
- pump and dumpFraudulent stock inflation scheme
market manipulation · cryptocurrencies · retail investors · casino · technical analysis · cognitive biases · leverage · systemic risk · futures · scalping · FOMO · stocks · meme stocks · hedging · ticker · regulatory oversight · market volatility · margin
- Futures Tradingfutures, futures contract, futures contracts, futures exchange, hedging
- market bubblesbubble, asset bubble, tulip mania, dot-com bubble, housing bubble
speculative tradingcapital preservation
Safeguarding original investment value