# Spot speculator

- Canonical URL: https://www.gerhardmerk.de/spot-speculator
- Post ID: 589263
- Modified: 2023-07-25T21:11:46+00:00
- Language: en

## Definition

On the foreign exchange market, a market participant who buys/sells spot currencies and waits for their spot rate to rise/fall. As soon as he seems to realize a reasonable profit, the speculator makes a new spot transaction in the opposite direction. - The spot speculation has the disadvantage for the professional speculator that it ties up considerable transaction funds. This is because the speculator must - either hold foreign currency until its rate has risen sufficiently, or - hold domestic currency available until he can use it to buy foreign currency when the rate of the foreign currency (xeno currency) falls. As financial history teaches, such trades conspicuously drove many speculators to ruin time and again. - See barefoot pilgrim, grace money, rebbes, yield, implicit, speculator, forward speculator. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1