Examlex
Which of the following statements is true?
Speculator
An investor who engages in the buying and selling of financial instruments with the aim of profiting from short-term market fluctuations.
Futures Contract
A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, typically traded on a futures exchange.
Underlying Asset
A financial asset upon which a derivative's price is based, such as stocks, bonds, commodities, or currencies.
Leverage
The use of borrowed funds to enhance the potential return of an investment.
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