Individuals and companies who enter into contracts in order to profit from correctly anticipating price movements are known as:
A)speculators.
B)hedgers.
C)dealers.
D)scalpers.

Question

Quizplus · Accepted Answer

Speculators are individuals or companies who enter into contracts to profit by correctly anticipating future price movements. They may not have an underlying interest in the commodity being traded, but they are willing to take on risk in order to make a profit. Hedgers, on the other hand, enter into contracts to manage their exposure to price risk, and dealers are intermediaries who facilitate trades between buyers and sellers. Scalpers are traders who attempt to make small profits through frequent trades.

Individuals and Companies Who Enter into Contracts in Order to Profit