Stack Exchange Network

Stack Exchange network consists of 175 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers.

Visit Stack Exchange

Questions tagged [speculation]

Transaction of a financial instrument with a calculated risk in hopes of obtaining a commensurate gain that offsets more than the possible loss.

3
votes
4answers
358 views

Why are options contracts traded speculatively when investors could just trade the underlying asset?

I'm currently trying to understand why anyone would trade options contracts speculatively. So far I've found 3 possible reasons: Because the underlying asset cannot be traded directly (i.e. you can't ...
9
votes
2answers
969 views

Data for the Tulip mania

The Tulip mania is considered to be one of the first recorded examples of a speculative bubble in modern history. Long story short, the newly introduced tulip plant in the United Provinces, combined ...
2
votes
3answers
163 views

Commodity market. Why would actual sellers / buyers bother about speculative price?

Investopedia says: The following are two types of futures traders: hedgers speculators An example of a hedger would be an airline buying oil futures to guard against potential ...
5
votes
1answer
308 views

How to build an electricity portfolio for an electricity production company?

I am referring to an electricity production company. Company is located in AsiaPac. The power is generated using Natural Gas fired combined-cycle power plants. Then this electricity is distributed to ...