What Is Currency Speculation?

Currency speculation is merely the act of buying or selling a currency with a view to profiting from a desired fluctuation in that currency. This act is clearly distinct from buying or selling a currency for practical purposes as is typical for people holidaying abroad who need to sell their domestic currency to buy the foreign currency of the country they are visiting or indeed for a business who might, for example, be exporting goods to a foreign country and so receive payment in a foreign currency and must therefore sell the foreign currency to buy back domestic currency.