Posts Tagged ‘conclusion’
The Role of Stock Market Speculation: DEVELOPMENT -part 8-
Speculation in the future market
When it exists or is planned to hold a strong position in cash and not adopted any coverage is also being speculated. Such action must be classified as passive or static speculation, unlike the previously stated, referring to speculation active or dynamic.
The high degree of financial leverage or “leverage effect” is achieved in the futures contract makes it especially attractive to the speculator participation in these markets, which is why those who perform dynamic speculative operations know that the important multiplier effect of capital gains will be very satisfying to provide correctly the trend of prices. Read the rest of this entry »