market participant who tries to profit from buying and selling. Speculators assume market price risk and add liquidity and capital to the futures markets. Speculators may purchase volatile assets and hold them for a short time in order to reap a profit. They may also sell stocks short and hope to cash in when the stock price drops quickly.
market participant who tries to profit from buying and selling futures and options contracts by anticipating future price movements. Speculators assume market price risk and add liquidity and capital to the futures markets. Speculators may purchase volatile stocks or mutual funds, and hold them for a short time in order to reap a profit. They may also sell stocks short and hope to cash in when the stock price drops quickly.
one who invests with the anticipation that an event or series of events will occur to increase the value of the investment.
Example: The value of single-family houses has been appreciating rapidly for several months. Munson, a speculator, purchases several houses in anticipation that this rapid rate of appreciation will continue.
