Derivatives

Speculator

A market participant who takes on new risk, based on a view of future price movement, aiming to profit from it.

A speculator is a market participant who deliberately takes on risk — without necessarily having an existing exposure to protect — based on a view of where a price will move, aiming to profit from that movement. Speculators also play a key role in providing liquidity that helps hedgers execute their trades.

See how speculators and hedgers complement each other in Why Do Futures and Options Exist? Hedging vs Speculation.