DEFINITION of 'Speculator'

A person who trades derivatives, commodities, bonds, equities or currencies with a higher-than-average risk in return for a higher-than-average profit potential. Speculators take large risks, especially with respect to anticipating future price movements, in the hope of making quick, large gains.


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BREAKING DOWN 'Speculator'

Speculators are typically sophisticated, risk-taking investors with expertise in the market(s) in which they are trading and will usually use highly leveraged investments such as futures and options.

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  1. What are the macroeconomic effects of allowing stock buying on margin?

    Purchasing a stock on margin is principally no different than purchasing a house through a mortgage loan. The macroeconomic ... Read Full Answer >>
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    Traders roll over futures contracts to switch from the front month contract that is close to expiration to another contract ... Read Full Answer >>
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