What are Speculative Transactions.

Speculative Transactions

" Speculative Transactions " means a transaction in which a contract for purchase or sale of any comodity including Stock and Shares ( Cryptocurrency too ), is periodically or ultimately settled otherwise than by the actual delivery or transfer of the comodity or scrips.

Example

When you go to the market to buy something ( say Potato ).

Case (I) If yor intention is to take delivery of the Potato, then this is non-speculative transaction.

Case ( II) If your intention is not to take delivery, and you purchased Potatoes only for selling at higher rate to other delars, then this is a speculative transaction.

In most of the country's Speculative Transactions are illegal with exceptions. Such as Delealing in Share of Company.

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