What Is the Difference between an Arbitrageur and a Speculator?

An arbitrageur seeks to profit from temporary price discrepancies of the same asset across different markets or forms, aiming for a risk-free profit by simultaneously buying and selling. A speculator, conversely, takes a position on the future price movement of an asset, inherently taking on market risk in the hope of a larger return.

Arbitrage is stabilizing; speculation is risk-taking.