The difference between speculators and hedgers is that speculators are _______ while hedgers are ______

Question

Quizplus · Accepted Answer

Speculators are individuals or firms who are willing to take risks in order to make profits from trading in financial markets. They are often looking to profit from short-term market movements and fluctuations. On the other hand, hedgers are individuals or firms who want to reduce or eliminate the risks associated with financial market movements. They use financial instruments such as futures contracts to protect themselves against unfavorable market movements. They are risk averters and are focused more on long-term risk management rather than short-term profits.

The Difference Between Speculators and Hedgers Is That Speculators Are