distinguish between speculator and hedger

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distinguish between speculator and hedger..

Answer / giri

The main difference lies in the motive of the two parties.
The main motive of the hedger is to hedge(minimize) the
risk from the occurence of some events.

The motive of the speculator is to gamble in the market in
order to make the profit by buying/selling the derivative
products.

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distinguish between speculator and hedger..

Answer / bunty

Hedger and Speculator are using some similar techniques but
for different purpose.

Hedger is one who wants to minimise his/her risk due to
changes in prices (any financial asset)

Speculator is one who wants to gain from such price changes

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3 No

distinguish between speculator and hedger..

Answer / k.janardhan

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