nvestment differs from arbitrage, in which profit is generated without investing capital or bearing risk.

An investor may bear a risk of loss of some or all of their capital invested, whereas in saving (such as in
a bank deposit) the risk of loss in nominal value is normally remote. (Note that if the currency of a savings
account differs from the account holder's home currency, then there is the risk that the exchange rate
between the two currencies will move unfavorably, so that the value in the account holder's home currency
of the savings account decreases.)
Speculation involves a level of risk which is greater than most investors would generally consider justified
by the expected return. An alternative characterization of speculation is its short-term, opportunistic nature.
The investment principles of both of these investors have points in common with the Kelly criterion for
money management.[3] Numerous interactive calculators which use the Kelly criterion can be found online