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Speculator

• One who trades a commodity or security with a higher than average risk in return for a higher than average profit potential.

• One, who attempts to anticipate price changes and, through buying and selling contracts, aims to make profits. A speculator does not use the market in connection with the production, processing, marketing or handling of a product. See: trader.

 
 Embedded terms in definition
 Average
Commodity
Market
Production
Profit
Return
Risk
Security
 
 Referenced Terms
 Bear: Is a person such as an investor, Speculator, or strategist who thinks that a stock, index, or market will decline in value. Compare to Bull.An investor who acts on the belief that a security or the market is falling or is expected to fall. See also: Bull.An investor who believes a stock or the overall market will decline. A bear market is a prolonged period of falling stock prices, usually by 20% or more. Related: bull.

 Bull: An investor who thinks the market will rise. Related: bear.An investor who thinks the market or a specific security or industry will rise. See also: Bear.Is a person such as an investor, Speculator, or strategist who thinks that a stock, index, or market will appreciate in value. Compare to Bear.

 Scalper: A Speculator who actively trades a futures contract in the hope of making small profits off transitory upticks and downticks in price.

 Short selling: Short selling is the selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short selling is a legitimate trading strategy. Short sellers assume the risk that they will be able to buy the stock at a more favorable price than the price at which they sold short.Is the act by which a Speculator or risk manager sells an instrument at a high price with the intent of purchasing it lower. This is particularly the case for the speculator. The risk manager would generally be selling short against a specific or global exposure. There are technical differences in selling short on the futures and securities markets. Also, the purchase of puts or other derivative strategies can serve as a substitute for being short. There are different rules which apply to short sellers on securities markets. The key differences are between market makers and market participants.Establishing a market position by selling a security one does not own in anticipation of the price of that security falling.

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