Forex speculation is necessary and unavoidable because there are substantial possibilities of both profit and loss, and the risks therein must be assumed by someone. So people who are fond of risks take part in forex speculation. Then is forex speculation beneficial or disadvantageous? It is a hard question to answer because advantages exist along with shortcomings. On one hand, forex speculation plays a key role in keeping the forex market balanced and active. The fluctuation of the forex is unpredictable. Thus exchange rate may go upwards or downwards. When the market goes down or goes up at a higher speed, amount of forex released by forex speculators who are anxious to make some profits will help curb the further fluctuation. On the other hand, over-speculation may lead to chaos of the forex market. Then come back to the question: is forex speculation a blessing of a curse? Answers may different form one to another because of the differences in perception, ability, capital and timing. If forex speculators are able to analyze potential market trend correctly, forex speculation definitely is a blessing for them; on the contrary, if forex traders fail to judge the market properly, it is a curse for them because they will lose money for that. So my conclusion is forex speculation can be a blessing or a curse, depending on how well forex speculators master the potential market trend of forex speculation.
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