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# Speculative Trade

## Definition

A form of commerce where merchants rapidly shift between different commodities and markets based on anticipated profit opportunities, rather than maintaining regular, established business operations in specific trades, characterized by irregular and unpredictable returns.

## Source Chapter

Book I, Chapter 10

## Context

Smith contrasts speculative trade with regular established business, noting that while it can produce sudden fortunes through successful speculation, it is equally likely to produce losses. He observes that this form of trade can only be carried on in places with extensive commerce and correspondence where intelligence about market conditions is readily available.

## Economic Domain

Exchange

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