Speculation

Speculation is a high-risk, high-return form of investing or trading where the speculator is focused more on reaping short-term upside gains than on the risk of loss. Speculative trading will typically (but not always) be conducted using leverage and on a naked basis (i.e. without hedging). It can be difficult to distinguish between investing and speculating; it is invariably the investor or trader’s intentions that push it between one or the other.

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