What Is the Difference Between Hedging, Speculation, and Arbitrage

question 53

Essay

What is the difference between hedging, speculation, and arbitrage?

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Definitions:

Consistent Cheerfulness

The tendency to exhibit a positive, optimistic demeanor and mood across various situations and over time.

External Locus of Control

The belief that external forces beyond one's personal control determine life's events, leading to a perception of having little influence over one's fate.

Luck

The experience of notably positive, negative, or improbable events.

Exertion of Energy

The physical or mental effort applied to do something or achieve a particular result.