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Currency Speculation
Currency speculation is the practice of making bets on the future value of a currency. Speculators seek to profit from changes in exchange rates by buying or selling a currency in anticipation of its future value. It's a high-risk, high-reward activity that requires a good understanding of the economic and political factors that can affect currency values.
Speculators may use different strategies to try to predict currency movements, including technical analysis (looking at historical price trends) and fundamental analysis (considering economic and political factors). Currency speculation can create volatility in the foreign exchange market, but it can also help to increase liquidity and price discovery. While it can be a lucrative endeavor, it's also high-risk, and many speculators lose money.