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Speculator
Speculator
Image 1 A person who trades a derivatives, commodities, bonds, or equities with a higher than average risk in return for a higher than average profit potential. Speculators anticipate large price movements in either direction.
Image 2 Speculators will usually use futures and options because they are highly leveraged investments.

An example is someone buying call options in a stock they think will increase dramatically over the next month.


Leverage

Market maker

Punter

Risk