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. Speculators are typically sophisticated, risk-taking investors with expertise in the market(s) in which they are trading. 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.
Sayed Farrukh Ahmed
Assistant Professor
Faculty of Business & Economics
Daffodil International University
