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Is speculation moral? How is it good for the citizens of the world?
Stock markets, funds, bonds, forex… just shifting money around…
People who benefit gain value. Sure, there are win-win situations in life, but that’s usually from reduction of inefficiency through innovation and/or cooperation. Is there a reduction in inefficiency?
Speculation assume risk of exchange rate and price changes in futures markets for business and farmers so provide a useful function ( like insurance does ) but it can get out of hand and can produce excessive price variation (bubbles and crashes) when they start playing with each other.
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LikeDislikeIf you want to reduce the risk of owning an asset, you must sell it to someone. That person would need to be speculating that the value of that asset will increase, wouldn’t he? Would you be better off if that person couldn’t buy the asset you want to sell? How?
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LikeDislikeThere will be reductions on every aspects and factors when you are focusing yourself on trading financial markets. It is just as matter of time really.
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