Speculator
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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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