Speculation

What Does Speculation Mean?
The process of selecting investments with higher risk in order to profit from an anticipated price movement.

Investopedia explains Speculation
Speculation should not be considered purely a form of gambling, as speculators do make an informed decision before choosing to acquire the additional risks. Additionally, speculation cannot be categorized as a traditional investment because the acquired risk is higher than average.

More sophisticated investors will also use a hedging strategy in combination with their speculative investment in order to limit potential losses.