speculator

Speculator

A person who trades (i.e. 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, or gambling, in the hopes of making quick, large gains.

Investopedia Commentary

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

Related Links

Getting Started In Forex
A Primer On The Forex Market
The Fundamentals Of Forex Fundamentals
Profiting on Interventions in Forex Markets

See also: Invest, Then Investigate, Leverage, Market Maker, Punter, Rio Trade, Risk, Speculation, Take a Bath, Take a Flier

Also spelled: Speculation, Speculative

speculator

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.