speculative trading

What does speculative trading mean?

Speculative trading is a strategy which is high risk but can generate high reward. This differs to investing where asset classes are bought and held long term. Speculative traders may only hold the asset for a short period of time and sell the position once the speculator thinks it time to crystalise profits. Definition Speculative traders take high risk positions in assets which have the potential to generate very high returns. These investments also have the probability of generating very …

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