Speculation is the act of trading a financial instrument with prevalent risks with the expectation that it will offer significant gains or returns in the nearest future. In the purchase of asset or investment, speculation refers to an act of buying an asset based on the belief that it will increase in value. It is the purchase of an asset that has significant risk with the hope that it will also offer substantial returns. When an investor uses speculation, it is an act of buying or selling stocks or investment position with the purpose of making profits quickly. An investor who speculates enters short-term positions in the market with the expectation of earning significant returns on the position. If you are new to currency trading, a great way to get started is to open an Account with UTO Capital and join the winners.