The main difference between investing and speculating is the amount of risk a trader is willing to take. Investors are usually happy to take a low-medium level of risk in order to earn a satisfactory return on their initial capital. Speculative traders are more likely to take a higher level of risk to be rewarded with higher returns from their bets, which can go one way or the other. Investors are more likely to buy and sell ETFs, stocks and stock CFDs, mutual funds, and a range of other financial assets to generate their profit or income. While speculative traders are open to putting their money into instruments with a higher probability of failure, and could include CFD and options.