Speculation
Definition · Level 0 · Market basics
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Deliberately taking on risk to profit from an expected price move, rather than to offset an exposure you already have.
Example
Buying calls ahead of earnings with no stock position: a pure directional bet.
Where Tradecraft teaches it
Level 0 · Market basics, in the lesson “What markets do”: Why markets exist, the main asset classes, and how new securities reach investors.
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