What is speculator?Speculator
A trader with no physical goods who takes on price risk to profit from moves, providing the other side and liquidity for hedgers.
Learn “speculator” in an animated lesson
- Futures BasicsHedgers and Speculators
Selling the same wheat future, a farmer with wheat is "buying insurance" while a trader without wheat is "placing a bet". The basis decides how precisely a hedge locks in the price.
- Futures BasicsWhat Are Futures?
A farmer and a bakery agree today on the price of wheat in 3 months. That's a futures contract: a standardized agreement to buy or sell at a fixed price in the future.
Related terms
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Go to “Hedgers and Speculators”