Spice Trader

Posted in Finance, Accounting and Economics Terms, Total Reads: 773

Definition: Spice Trader

Spice Trader is a term used for investors who are involved in very risky instruments or markets.

Since returns on high risk investments are deemed to be higher than usual, spice traders prefer trading in them. Spice traders are not known to limit to any specific market – junk bonds, exotic options, derivatives and stock market are all equally viable.

Spice traders are solely interested in the high premiums brought by increased risks taken. 

Spice traders are not in the market for long term gains, the main concept here is to invest in high risk high return option. The traders invest in large number of such options and then earn money through returns.

Spice trading is a risky affair and is sometimes not a preferred in the idealistic trading school of thought which emphasizes on long term gains through stable stocks or investment options.

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