A speculator, not a hedger, would purchase a futures contract even though they had no interest or ownership in the underlying asset.

Question

Quizplus · Accepted Answer

Speculators participate in futures markets to profit from price changes in the underlying assets, often without any intention of taking delivery of the actual asset, unlike hedgers who use futures to manage risk associated with price volatility of assets they own or plan to own.

A Speculator, Not a Hedger, Would Purchase a Futures Contract