Speculative Risk

Speculation is like gambling is a zero-sum game, unlike the investors who produce no value, like a higher probability of losses (or profits).  

Such high-risk, high-return investments are associated with everyday operational processes that are repeated risk-taking. 

Some examples of high-risk investments are - Buying foreign currency as its value will increase in the efficient market, but there can be losses due to transaction costs.

The production line work may create a product that can generate revenue or may experience outages.

Starting a business on a new idea or global capital investment in a unique business model has a higher chance of failing. Still, in rare cases, it may deliver superior returns to the early investors. 

The gamble taken voluntarily results in profit or loss, which is called speculative as it was undertaken as a conscious choice.

Almost all types of investments have speculative risk, and these ventures may face an unknown amount of success or failure.

It is not a pure risk that can be insured and mostly leads to a loss. 

Taking automobile insurance is related to pure risk, as any auto accident can lead to damage, but even when there is no accident, there is no possibility of any gain.  

People who invest in stocks are mostly not sure if their actions will give them profit or loss, and it is one of the classical explanations of speculative risks or a kind of gambling as it is not covered. But, moreover, they may give gains.