Futures contracts can be used by traders to transfer risk (hedge)or to accepting risk (speculation).

Name: Futures contracts can be used by traders to transfer risk (hedge)or to accepting risk (speculation).
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Futures contracts can be used for both hedging and speculation. Hedgers use futures to transfer risk by locking in a price for a future transaction, while speculators accept risk in the hopes of making a profit by predicting price movements.

Futures Contracts Can Be Used by Traders to Transfer Risk