A derivative is a financial instrument whose value is based on the price of another underlying asset. Derivatives are commonly used for hedging, speculation, and arbitrage purposes to mitigate risk or enhance potential returns.
FLIP involves the purchase and immediate resale of property, often within hours or days, aiming for quick profit. It can carry a negative connotation when associated with illegal activities that exploit innocent parties.
Speculation in real estate refers to investment decisions made based on predictions about the future value of property. This can involve acquiring property with the expectation of selling it off at a higher price after a favorable market change or development.
