A method of buying in anticipation of price fluctuation in the commodity market is?
Answer Details
Speculation is a method of buying in anticipation of price fluctuation in the commodity market. In other words, a speculator buys an asset (such as a commodity) with the hope that its price will go up in the future. If the price does indeed increase, the speculator can sell the asset for a profit. However, if the price decreases, the speculator may incur a loss. Speculation is a high-risk, high-reward strategy that is used by individuals and institutions who have a strong understanding of the market and believe they can predict future price movements.