An exchange rate system where countries stabilize their exchange rates around par values that they retain the right to change, commonly used under the Bretton Woods system in the 1950s and 1960s.
A bear is a trader on a stock or commodity market who believes that prices are more likely to fall than to rise. They sell their shares or commodities in hopes of buying them back at a lower price in the future.
A comprehensive overview of economic bubbles, historical context, key events, types, significance, and related concepts.
Currency Speculation involves trading in foreign exchange markets with the aim of profiting from short-term fluctuations in currency values.
An in-depth exploration of Directional Trading, a type of trading strategy that focuses on predicting and capitalizing on the upward or downward movement of asset prices.
Fictitious Capital refers to capital that increases through means that do not reflect genuine productive output, often through financial instruments and speculative investments.
An in-depth exploration of financial bubbles, their historical context, types, key events, causes, mathematical models, and lasting impact on financial markets and economies.
An in-depth guide to financial derivatives, exploring their types, uses, historical context, and much more.
Financial futures are futures contracts in currencies, interest rates, or stock indices. These contracts commit both parties to a transaction on a future date at a pre-arranged price and are traded in organized exchanges.
A foreign-exchange dealer engages in buying and selling foreign currency in the forex market, often as an employee of a commercial bank. This article covers their roles, responsibilities, historical context, key events, formulas, and much more.
An in-depth exploration of forward and futures contracts, their historical context, types, key events, mathematical models, charts, applicability, and more.
Forwards are customized contracts traded over-the-counter (OTC) that serve as a financial instrument for hedging and speculation, distinct from standardized futures.
Futures are financial contracts obliging the buyer to purchase, or the seller to sell, an asset at a specified price on a predetermined date in the future.
A comprehensive exploration of futures contracts, including historical context, key events, detailed explanations, models, charts, applicability, examples, and much more.
A comprehensive look into futures contracts, exploring their historical context, types, key events, mathematical models, importance, examples, and much more.
Index futures are financial derivatives that allow investors to speculate on or hedge against the future value of a stock market index.
Interest-rate futures are a type of financial futures contract in which the pay-off is determined by an interest rate. Used for hedging risks or for speculative purposes, these instruments are traded on various exchanges worldwide.
Exploring how traders bring forward or defer transactions based on currency expectations.
A market bubble occurs when asset prices in a specific market, such as the stock market, are significantly higher than their intrinsic value, driven by speculative activity.
A prediction market is a type of market created for the purpose of forecasting the outcome of events where participants buy and sell shares that represent their confidence in a certain event occurring.
A comprehensive guide to understanding put options, their historical context, types, key events, detailed explanations, mathematical models, importance, and applicability.
A comprehensive guide to understanding spec homes, homes built by developers without a specific buyer in mind, with the intention of selling upon completion.
A comprehensive exploration of speculation, an economic activity aimed at profiting from expected changes in the prices of goods, assets, or currencies.
An individual or firm that takes risks for expected profits, providing liquidity and aiding in price stability but often blamed for economic instability.
Exploring the concept of 'Going Long' in investment and speculation, covering its definition, types, considerations, examples, historical context, and comparisons.
An in-depth look into the Greater Fool Theory, which suggests that the price of an overvalued stock or market can continue to rise as long as there are investors willing to pay a higher price.
An in-depth look at the concept of 'Hammering the Market,' a term used to describe the intense selling of stocks by speculators who believe prices are inflated and the market is about to drop.
A scalper speculator enters into quasi-legal or illegal transactions to turn a quick profit. This entry explores the definition, types, historical context, and implications of scalping.
Detailed explanation of speculation in financial markets, including types, examples, comparisons with gambling and investment, and historical context.
The phrase 'take a bath, take a beating' refers to suffering a significant financial loss on a product, speculation, or investment.
A Comprehensive Guide to Understanding Hardening in Commodity and Futures Markets: Stabilization, Gradual Advances, and the Role of Speculators
An in-depth exploration of hoarding, detailing its definition, operation within commodity markets, and historical examples.
A detailed exploration of interest rate options, their functions, and practical applications in hedging and speculation in financial markets.
Speculation involves conducting financial transactions that carry significant risk of losing value but also offer the opportunity for substantial gains. It is a crucial concept in finance and economics, often associated with high-stakes trading, market volatility, and profit potential.
An in-depth exploration of speculators, including their definition, types, strategies employed, and their impact on financial markets.
A detailed exploration of variance swaps, including their definition, operational mechanics, and a comparison with volatility swaps.
