{"id":4020,"date":"2023-03-12T20:03:36","date_gmt":"2023-03-12T20:03:36","guid":{"rendered":"https:\/\/fisdomdevel.wpengine.com\/glossary\/speculator\/"},"modified":"2023-03-12T20:03:36","modified_gmt":"2023-03-12T20:03:36","slug":"speculator","status":"publish","type":"post","link":"https:\/\/www.fisdom.com\/glossary\/speculator\/","title":{"rendered":"Speculator"},"content":{"rendered":"<p>\nIn stock markets, high-risk trades that one enters into with the hope of making a profit are known as speculative trades and a person or institution engaged in speculative trades is known as a speculator. Speculators place short term bets on securities, which have potential of generating high returns, due to volatility in prices.<\/p>\n<h2>Who is a Speculator<\/h2>\n<p>Some characteristics of speculators are :<br \/>\na) Speculator engages in trading activity which is high-risk and high-return where the prospect of gain is high and so is the chance of capital wipeout<br \/>\nb) Speculators look at the price movements of an asset for gains rather than its fundamentals<br \/>\nc) Futures and options are examples of speculative trading as traders try to profit from future price movement and have short maturity period<br \/>\nd) Speculators trade in currencies, commodities, oil, gold etc.<\/p>\n<h2>What is the role of a speculator in stock markets?<\/h2>\n<p>Speculators play a crucial role in markets because:<br \/>\n1. They provide liquidity by buying and selling<br \/>\n2. They help in absorbing excess market risk<\/p>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>In stock markets, high-risk trades that one enters into with the hope of making a profit are known as speculative trades and a person or institution engaged in speculative trades is known as a speculator. Speculators place short term bets on securities, which have potential of generating high returns, due to volatility in prices. Who [&hellip;]<\/p>\n","protected":false},"author":67,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[11],"tags":[],"class_list":["post-4020","post","type-post","status-publish","format-standard","hentry","category-stocks"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4020","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=4020"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4020\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=4020"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=4020"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=4020"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}