In page navigation
Speculator
Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
An individual or firm taking risks for the sake of expected profits. Speculators may be willing to do this because they believe they have better information and ability to forecast future prices than other market participants, or because they are risk-neutral, or less risk-averse than other market participants, who are willing to pay to transfer risks to somebody else. Speculation has been seen as a cause of economic instability. This possible disadvantage has to be set against the claims that speculators provide liquidity for other people’s assets, that on average their activities smooth price fluctuations rather than increase them, and that without speculators many innovations could not have been financed.
Reference: Oxford Press Dictonary of Economics, 5th edt.
More definitions
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >