speculator investment & finance definition
A
trader who attempts to gain a profit for himself, his fund, or his firm from
buying and selling futures and options contracts, in contrast to a broker who
executes orders on behalf of someone else. Speculators add liquidity and
capital to the futures market.
See speculator in Wall Street Words
A person who is willing to take large risks and sacrifice the safety of principal in return for potentially large gains. Certain decisions regarding securities clearly characterize a speculator. For example, purchasing a very volatile stock in hopes of making a half a point in profit is speculation, but buying a U.S. Treasury bond to hold for retirement is an investment. It must be added, however, that there is a big gray area in which speculation and investment are difficult to differentiate. Also called punter.
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