Currency Speculators Definition
A currency speculator is an individual who attempts to profit from the changing value of one currency against another. Currency speculation is a risky proposition, as exchange rates can fluctuate rapidly and unexpectedly. Speculators typically trade on margin, meaning they only need to put up a small amount of capital in order to open a position.
While some currency speculators may take positions based on their own analysis of the market, many more simply attempt to profit from news events or ‘buy the rumor, sell the fact.’ This type of speculation can lead to volatile market conditions and sharp price movements.
