a trading industry that makes use of the price difference in the market to buy and sell and gain profits from it.

speculation can be divided into two major areas: real economy speculation and virtual economy speculation, among which securities speculation is the most abundant and complicated. People's daily purchase of lottery tickets, stocks and other trading choices based on their own resources by using the obtained information belong to speculation. The purpose of speculation is directly to obtain the profit of price difference.

the main feature of speculative trading is to enlarge the leverage of funds to obtain a higher return on investment. Its disadvantage is that once the market operates in the opposite direction, the losses it brings are incalculable.

Extended information

According to the length of holding futures contracts, speculation can be divided into three categories:

1. Long-term speculators, who usually hold futures contracts for days, weeks or even months after buying or selling them, and hedge them when the price is favorable to them;

2. Short-term traders generally buy and sell futures contracts on the same day or a trading festival, and their positions do not last overnight;

3. Profit-seekers, also known as "hat-snatchers", use small price changes to make small profits, and they can make multiple rounds of trading in one day.

Baidu Encyclopedia-speculation

Baidu Encyclopedia-speculation