The basic difference between speculators and hedgers in futures contracts is that speculators:
A)Will profit regardless of the direction of price change
B)Are not protecting their commodity holdings through an offsetting transaction
C)Are concerned only with long-term price movements
D)Take a position in more than one commodity at a time

Question

Quizplus · Accepted Answer

Speculators are not protecting their commodity holdings; they are attempting to profit from price changes, unlike hedgers who use futures to offset potential losses in their actual commodity holdings.

The Basic Difference Between Speculators and Hedgers in Futures Contracts