This individual takes a futures contract position that is opposite to the position in the spot market in order to reduce risk
A) speculator
B) hedger
C) spreader
D) arbitrageur
E) trading advisor

Question

Quizplus · Accepted Answer

A hedger takes a futures contract position that is opposite to the position in the spot market in order to reduce risk. A speculator takes a position in the futures market with the sole purpose of making a profit. A spreader takes positions in two or more different futures contracts with the aim of making a profit from the difference in prices. An arbitrageur takes advantage of price discrepancies between different markets to make a profit. A trading advisor provides advice to clients on trading strategies and investment decisions.

This Individual Takes a Futures Contract Position That Is Opposite