Stabilising speculation occurs when speculators:
A) buy high and sell low
B) buy low and keep the currency for a long period of time
C) base their decisions on fundamental, rather than technical, analysis
D) buy low and sell high

Question

Quizplus · Accepted Answer

Stabilising speculation involves buying assets when their prices are low and selling them when their prices are high. This activity can help to stabilize market prices by reducing volatility, as speculators are essentially betting against the prevailing market momentum by buying undervalued assets and selling overvalued ones.

Stabilising Speculation Occurs When Speculators