The Linkage between Speculation and Derivatives' Trading

The paper describes a brief characterization of similar attributes of the concept of speculation and the nature of derivative instruments. The paper focuses on answering the question if it is possible to perceive trading of derivative instruments as a materialization of speculative behavior of market's actors. The paper includes a characterization of theoretical framework of speculation as well as derivative instruments. Among discussed attributes of both concepts belong for example the core of their definitions, leverage principle or liquidity function. The main goal of the contribution is to provide an evidence of some linkage between speculation and derivatives' trading.