Market Control through Speculation

Abstract

Speculation is an important element in achieving commercial exchange and encouraging investment between financial institutions and speculators. There are many types of traders in the market with different goals depending on the benefit they want to obtain. The market may be controlled by a person who may be a speculator or a market maker. The speculator may be aware of the estimation of the value of the paper. Finance، a news trader، or someone who builds his trading on the basis of comparison and wants to make a profit from the expected fluctuation in the market price، represented by curbing potential losses resulting from a specific order he owns، and the market maker wants to provide liquidity and stability for the market situation through short selling because he wants to provide liquidity and stability to the market. The role of speculators and institutional investors in the stock market is highlighted in selecting opportunities when fluctuations and crises of the stock market occur in an effort to control the market. On the other hand، the role of the stock market maker is highlighted in striving to achieve a balance between supply and demand and reduce the difference between the buying and selling prices، in order to achieve a fair price. Speculators، licensed market makers، market specialists، or some market makers who troll beginner retail traders are interested in continuously following the movement of securities prices، especially in the stock، bond، currency، real estate، and financial derivatives markets. One of the fluctuations that occur in the market prices of investment tools that make up the investment portfolio.