Questions tagged [speculation]

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Can mere expectations affect oil spot price?

For example if confirmed information spread today that for some reason oil producers will increase their supply one month later, will this affect oil spot prices immediately like what happens in ...
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1 vote
2 answers
274 views

Money laundering and speculation gains

With all the crypto speculation I was wondering: How do countries differenciate between "dirty" money and speculation gains? I know that in Switzerland you don't have to pay taxes on capital ...
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1 answer
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Did I give bad advice about investing in market making firms?

Background: I recently explained to an amateur trader (who happens to be a family member) about the basics of the bid-ask spread and how market makers make money from the spread. As an offhand remark, ...
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1 vote
3 answers
85 views

Why roll an option rather than placing a different bet?

When an option is rolled, it is placing a second bet, different than the original one. Why do people think this is a good idea? There are an infinite number of other bets one could place -- at ...
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0 votes
5 answers
318 views

How are retail forex brokers different from betting shops?

I'm struggling to find differences between bookmakers and retail forex brokers (e.g. OANDA). The former deals with horse racing, greyhound racing and sports, while the latter deals with currency ...
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6 votes
1 answer
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How can I gamble in a "lottery" by using financial instruments?

I noticed that some financial instruments have lottery-like payoffs. If that is really the case, I am planning to play the "lottery" using financial instruments instead of the lotteries ...
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24 votes
6 answers
6k views

What does Benjamin Graham mean by "Those who speculate make money for their brokers"?

In The Intelligent Investor, page 36, Zwieg, who is writing the commentary, states "those who invest make money for themselves. Those who speculate make money for their brokers." Why is it the case ...
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0 votes
1 answer
94 views

Will Bloomberg Composite Crude Oil Subindex rise when Crude oil prices rise?

Since the oil prices have plunged recently, I want to capitalize on this opportunity by investing in WisdomTree WTI Crude Oil ETC which tracks Bloomberg Composite Crude Oil Subindex. Question: 1) ...
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-1 votes
2 answers
219 views

How to hedge against a potential collapse of the European Union? [closed]

I know this is unlikely, but the future of the EU looks bleak. The Coronavirus shattered the European states, making some override the Schengen Area rules and enforce cross-border checks. I'm looking ...
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3 votes
2 answers
214 views

Speculation in The Intelligent Investor

I'm reading The Intelligent Investor by Benjamin Graham, and I'm on Chapter 1: Investment versus Speculation. On page 21, he has this footnote: Speculation is beneficial on two levels.... Secondly, ...
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2 votes
2 answers
468 views

What is moving the cryptocurrency market apart from speculators?

I would like to know if there is anything that moves the crypto market apart from the speculators, or are cryptocurrencies purely speculative? For example, in the oil industry there are hedgers who ...
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1 vote
1 answer
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How to find out the ratio of speculators to hedgers?

When investing, I would like to find out the ratio of speculators and hedgers that are in the market. For some market, such as commodity, I guess you can make an educated guess, yet for many other ...
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2 answers
474 views

How do speculators make profit?

I am having some difficulties understanding the difference between hedging and speculation. HEDGING AND FUTURE CONTRACTS I know that if the investor gains when the price decrease and loses when the ...
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1 vote
0 answers
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When Does "External" Data Qualify as Material Nonpublic Information?

For the sake of example, let's say company X is a publicly traded company that manages a chain of department stores. I go to each storefront and setup security cameras to monitor customer traffic, ...
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-2 votes
1 answer
95 views

Buying the whole range of prices of an asset (stock, commodity, etc)

Imagine a scenario when I buy 1 gram of gold when the price hits a round value of $37, $38, $39 (and so on) and sell these grams for $0.50 more (after paying fees) when the prices go up. That is, if ...
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0 votes
0 answers
320 views

Are there speculative ETFs analogous to investment funds?

Are there ETFs that bundle up highly speculative investments with high risk/reward profiles? For instance, they might currently include Zambian, Nigerian, Brazilian and Venezuelan bonds; ...
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3 votes
1 answer
890 views

Given how much price decay there is in inverse (short) ETF's, are the inverse ETF's profitable even in a prolonged bear market?

To me some of these products look like they are designed in a the-house-always-wins manner, especially when one looks at their 1yr or 5yr charts. This observation applies for general ones bearish on ...
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3 votes
5 answers
778 views

Isn't an Initial Coin Offering (ICO) a surefire way to make tons of money?

I know this sounds stupid, but all the crypto currencies do really, really well after an initial Coin Offering (ICO), with some coins going up 10000% in 6 months. I find it puzzling: shouldn't ...
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1 vote
2 answers
589 views

Using Marine Traffic (AIS) to make stock picks?

I don't know anything about Gnuais, but satellite and terrestrial ship tracking? It's all over the place. https://www.ihs.com/products/ais-live-ship-tracker.html (just one example; there are many ...
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0 votes
2 answers
93 views

Are Speculative Shares safe?

I am a beginner investor. I have seen some speculative shares where I saw a potential of profit earning. But I am scared of the risk. So I want to ask if I need to be aware of something while trading ...
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2 votes
3 answers
657 views

Can I trade options purely as a leveraged product?

Following the Three Ways to Buy Options article from NASDAQ, there are supposedly three different ways to trade options after buying them: Exercise the option at maturity Exercise the option before ...
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5 votes
1 answer
286 views

How does a CFD work behind the scenes?

I'm curious as to how the Contracts For Difference (CFDs) work. I understand how they work for the consumer side - you enter into an agreement to pay/be paid the difference between the stock price at ...
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6 votes
1 answer
184 views

Is there a financial product that allows speculation on GDP?

is there an financial product linked to the GDP of the US (or other countries)? There are plenty of derivatives and certificates whose underlying equity is the Dow Jones, which makes it possible to ...
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6 votes
2 answers
1k views

With respect to insider trading, what is considered "material information"?

I'm trying to understand what is considered "material" information held by an executive of a company. There is company information that an executive (say insider) will know that a public investor will ...
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1 vote
1 answer
378 views

Reasons behind a large price movement of a penny stock without any recent news releases?

Sometimes I see penny stocks on the Yahoo! Finance page move by about 100% in a single day. For example, this stock shows a 91% gain on 10-Jan-2014. By browsing the news reports, I cannot see ...
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0 votes
1 answer
266 views

What factors you have do you count on to speculate effectively?

What are the factors that you consider if you want to make a thoughtful speculation decision (as thoughtful as being a speculator lets you be)? I can only count these: Market trends Patterns on the ...
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0 votes
1 answer
172 views

Can a non-Chinese private investor bet on Chinese Yuan Renminbi (CNY) going up vs. USD?

Is it possible for a non-Chinese private individual investor to bet on the Chinese Yuan Renminbi (CNY) going up against the U.S. dollar ?
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1 vote
2 answers
256 views

How to bet on Japanese government bonds interest rate going up in the coming years?

Is there a way for a private individual investor to bet on Japanese Government bonds interest rate going up in the coming years?
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6 votes
3 answers
534 views

Are my purchases of stock, mutual funds, ETF's, and commodities investing, or speculation?

Every other week money is deducted from my paycheck to purchase mutual funds inside my 401k, every so often I dump money into an individual investment account to purchase stocks, mutual funds, and ETF'...
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3 votes
2 answers
745 views

How to consider stock splits with respect to ETFs? Any different than for regular shares?

"Splits are used to increase the availability of shares on the market." I am unsure about this statement because you can increase the availability of shares through third-party funds like with ...
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1 vote
2 answers
246 views

Buffettesque Speculation in Consumer Sector, legendary-investor -philia?

Some corps in consumer sector are glamoured in many books associating to Graham and W. Buffett, I think even some books by Graham falls into this problem. The books I have covered so far have not ...
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7 votes
2 answers
202 views

Taxation from variations in currency

Assuming: I am a UK tax payer I live in the UK Assume I sell a good online, for $100. One payment method I accept is Bitcoins. Bitcoins at the moment are extremely volatile, it wouldn't surprise ...
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11 votes
7 answers
2k views

What is the difference between speculating and investing?

I keep hearing people saying that a speculation is NOT an investment, but isn't it really just investment with high risk?
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1 vote
1 answer
226 views

How to take advantage of record high household debt in Canada?

The Canadian household debt/disposable income ratio is currently (December, 2010) at a record of 1.48. Reference: The Globe and Mail - Household debt ratio hits record. What are some investment ...
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