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Speculator




An investor or trader who is willing to take large risks for a chance to make large gains.


Additional Comments:

Example: Buying a very volatile stock and hoping to sell it a day or a week later at a higher price is speculative trading. Speculators sometimes buy puts and calls in anticipation of a short-term move higher or lower in the underlying asset.

In the futures market, a speculator is a trader who hopes to profit from a directional move in the underlying instrument and attempts to anticipate price changes and, through buying and selling futures contracts, aims to make profits.

A speculator doesn?t use the futures market in connection with the production, processing, marketing, or handling of a product. The speculator has no interest in making or taking delivery.

Related Terms:

Directional Trade
A trade that requires the underlying asset to move in one direction in order to produce ...

Futures Contracts
Agreement to buy or sell an underlying security at a predetermined date at an agreed price. ...

Investor
A person whose principal concern in the purchase of a security is the minimizing of long-term ...





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