Topic. 9: Types of trading strategies

International stock exchange activity on organized commodity and financial markets involves the daily presence of high price and currency risks, which are attractive to a fairly large group of exchange participants, whose goal is to make profits from speculative trading strategies.
Speculators are now the main link in liquidity in international stock exchange activity.
Speculators assume most of the risks of other participants - hedgers and traders, and also multiply the size of investment capital on exchange platforms. Investment capital is quite important for ensuring effective circulation on organized markets and thereby increases the liquidity indicators of exchange trading.
With accurate and reasonable expectations about the future price situation, speculators on organized markets perform the following functions: 
- assuming most of the price and currency risks;
- providing hedgers with the opportunity to freely and quickly enter and exit the stock market;
- changing the ratio of supply and demand to form an equilibrium price;
- ensuring the necessary indicators of the depth and breadth of stock markets;
- increasing the liquidity of stock market indicators recorded on electronic stock exchanges due to new participants and new types of stock transactions;
- the ability to simultaneously open positions for purchase and sale, taking into account the price exchange situation;
- smoothing price dynamics over time;
- analysis and forecasting market conditions and price trends on electronic stock exchanges.
The French classic of economic theory P. Proudhon was among the first researchers of speculative theories. In his work “A Guide for Stock Exchange Speculators” (1857), he argued that the basis of production and reproduction of wealth consists of quite important components:
1) labor - the process of producing things, cultivating the land, smelting iron;
2) capital - investing money in trading activities;
3) speculation - the most important factor that is the basis for innovative production and the development of new technologies.
Production is an important process that creates additional values ​​and attempts to give additional value to things for the purpose of their effective implementation in organized markets.