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The use of speculative operations in the capital market and their importance

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Lypchuk V., Reznik N. P., Slobodianyk A. M.

Przedsiębiorstwo & Finanse

2019

issue 4

85-98

The article is devoted to substantiation of significance of speculative operations and follows the goal to study their condition and development. It is substantiated that existence and stability of the securities market plays a significant role in development of financial market, which in turn becomes a key element in the mechanism of economy. The authors emphasize that the liquid market continues to function even with a large number of economic agents while price fluctuation of securities have a little change. Yet, arrival of speculators increases the number of participants in stock exchange transactions, thus promoting competition and, ultimately, more efficient detection of real value of economic subject. It has been proven that stock trading is very attractive for those who are interested in a combination of excitement and the possibility of a large quick profit, and is an extraordinary opportunity for profit as process of trading itself appears to be technically simple. It has been established that speculation can be carried out on the stock exchange both using cash and in futures transactions. However, operating with cash transactions has fewer combinations and in general less profitable, thus the main arena of speculators becomes the market of future transactions. It has been proven that speculative profits are possible during both “bullish games” and in shorting’s, thus becoming an important tool for additional attraction of investments. In summary, speculations have a crucial role in achieving a balance between capital market participants.

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1 Przedsiębiorstwo & Finanse

1 Lypchuk V.

1 Reznik N. P.

1 Slobodianyk A. M.

1 2019

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The use of speculative operations in the capital market and their importance