Business and Personal Finance Dictionary

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• SPECULATOR
  
  When you invest in futures contracts or buy or sell options strictly to take advantage of anticipated price changes and have no interestin buying or selling the underlying investment, you're a speculator. In contrast, hedgers buy futures and options to protect their financial interests. For example, a baker who buys a wheat futures contract in order to protect the cost of producing bread is a hedger. But someone who buys the same contract on the chance that contract will increase in value is a speculator.
  
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