Tag: bonds

Would you consider property speculation as gambling
casino blog
03 August 2008

In a financial context, speculation is the supposition of the risk of loss, in return for the uncertain prospect of a reward. Speculating is not the same as investing, though many seem to think so. Such a position would only be considered an investment if the particular position involved zero risk.

Financial speculation involves buying, selling, short-selling, holding, stocks, bonds, currencies, derivatives, real estate, or any other valuable financial instrument to profit from fluctuations in the price as opposed to buying it for use or income. Speculation represents one of four market roles in Western financial markets, different from hedging, long or short-term investing, and arbitrage. Currently, one of the most popular assets to speculate on is property. Real estate speculators are looking to turn a profit in the market. There is high risk involved with this business, but that hasn't deterred the lion's share of speculators.

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