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Economic Definition of speculation. Defined. Term speculation Definition: Buying an asset with the intent of reselling it later at a higher price. The purpose of speculation is simply to buy low today and sell high tomorrow. Those who engage in speculation have no reason for buying the asset, other than resale at a later time.
A: A speculator is anyone who trades derivatives, commodities, bonds, equities or currencies with higher-than-average risk in return for higher-than-average profit potential.lthough speculators are an integral part of the financial landscape, it should be noted that there have been many cases of speculators manipulating the markets illegally to profit from the results. Such speculation can be difficult to monitor and can drastically affect the financial system.