speculative trading

Speculative trading refers to buying and selling financial assets, like stocks, commodities, or currencies, with the hope of making a profit from future price changes. Traders engage in speculation by predicting market trends and prices, often taking significant risks to achieve high rewards. Unlike long-term investing, which focuses on the fundamental value of assets, speculation relies on short-term price movements. It attracts both individual and institutional traders seeking to capitalize on market volatility but can lead to substantial losses if predictions are incorrect.