What outcome does speculation primarily focus on?

Speculation primarily focuses on gaining profit from market price fluctuations. This involves taking calculated risks on the future price movements of commodities, stocks, or other financial instruments with the expectation of buying low and selling high. Speculators may employ various strategies, including leveraging their investments, to maximize potential returns from anticipated changes in market prices.

By engaging in speculation, investors aim to capitalize on short-term price movements rather than seeking to hold assets for long-term growth or stability. This practice often contributes to market liquidity, as speculators buy and sell frequently, but the primary objective remains the pursuit of quick profits based on price changes, rather than long-term asset management or stability.