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Zero sum is maintained by the fact that there is always two parties in a futures transaction; the Long and the Short. One wins at the expense of the other. It does matter how many speculators or hedgers there are because each individual futures contract is entered into by two parties.
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Who profits from futures trading?
The main people that profit from futures trading are the hedgers and speculators. The hedgers are the producer of the commodity who trades a futures contract to protect himself from changes in prices in the future for his product. A speculator is the independent floor traders and private investors that buy the contract and sell it for higher price.
How important the hedgers speculators and arbitrageurs in currency futures market?
Headgers are basically people who tend to mitigate the risk arising out of a trade or any underlying securities basically includes exporters & importers. Speculators on the otherhand bet on the price movements takes calculated risk when the market moves up on their expectations. Arbitrageurs takes risk by investing in alternative markets. Gain realised from the same is unlimited. All of the above are highly important as far as currency future market is concerned.
Who are the participants in a derivatives market?
There are four main types of participants in any Derivatives Market. They are: 1. Dealers 2. Hedgers 3. Speculators and 4. Arbitrageurs A point to note here is that, the same individuals and organizations may play different roles under different market circumstances
Explain the motives of principal users of the forward market information?
An over-the-counter marketplace that sets the price of a financial instrument or asset for future delivery. Contracts entered into in the forward market are binding on the parties involved. Forward markets are used for trading a range of instruments including currencies and interest rates, as well as assets such as commodities and securities. The principal users of the forward market are currency arbitrageurs, hedgers, importers and exporters, and speculators. Arbitrageurs wish to earn risk free profits; hedgers, importers and exporters want to protect the home currency values of various foreign currency denominated assets and liabilities; and speculators actively expose themselves to exchange risk to benefit from expected movements in exchange rates.
Who can be the investors on commodities market?
Technically anyone can be an investor on the commodities market. But there are two major categories: - Hedgers looking to protect themselves from future price changes in a commodity that is directly or indirectly related to their business. For example, a farmer may want to sell several bushels of corn to guarantee against a rise in prices. - Speculators looking to profit from differences in price movement.
What is hedgers?
It probably means hedge funds. Or maybe beer.OrHedger 9 thumbs upAbbreviation of the term Hedge Monkey.I saw a couple of Hedgers get out of that old van that's been parked in the same spot down the end of the street all month.hedge monkey crusty hippy squatter protester .
Differences between a futures contract and a forward contract?
There are 3 different types of forward pricing: (1) Forward contracts (which include cash forward contracts, minimum price forward contracts and deferred pricing contracts) (2) Futures Contracts and (3) Option Contracts. A forward contract is an agreement between two parties to buy or sell an asset at an agreed future point in time. The trade date and delivery date are separated. A futures contract is a standardized forward contract that is traded on an exchange, like SAFEX. Other than forward contracts, futures contracts are not linked with specific buyers. The intermediary between buyers and sellers is a clearing house that ensures that contracts held for delivery are fulfilled. Options contract convey the right, but not the obligation, to buy (call option) or sell (put option) at a specified price during a specified period of time. The good traded in the market is not the actual commodity, but a futures contract. The farmer will receive a futures contract, which will carry an obligation to buy or sell at some specific future date, if he/she chooses to exercise the option.
What does a carport do?
A carport is mainly used for parking a car underneath it. Depending on the area of the country you live in. It can protect your car from either the harsh rays of the sun or it helps to keep snow off the car. It can also be used to store lawn equipment such as lawn mowers, rakes and hedgers.
What kind of services does the flymo website provide?
The Flymo website offers a variety of different products and services aimed at any home owner caring for a lawn. At the Flymo website, one could determine where to find a nearby dealer location. One could also research hedgers, trimmers and mowers that Flymo offers.
What are some seven letter words with 1st letter H and 2nd letter E and 3rd letter D and 5th letter E?
According to SOWPODS (the combination of Scrabble dictionaries used around the world) there are 1 words with the pattern HED-E--. That is, seven letter words with 1st letter H and 2nd letter E and 3rd letter D and 5th letter E. In alphabetical order, they are: hedgers
What are some seven letter words with 1st letter H and 4th letter G and 5th letter E?
According to SOWPODS (the combination of Scrabble dictionaries used around the world) there are 8 words with the pattern H--GE--. That is, seven letter words with 1st letter H and 4th letter G and 5th letter E. In alphabetical order, they are: hangers hedgers hingers hoggers hoggery hoggets huggers hungers
What are some seven letter words with 1st letter H and 3rd letter D and 6th letter R and 7th letter S?
According to SOWPODS (the combination of Scrabble dictionaries used around the world) there are 2 words with the pattern H-D--RS. That is, seven letter words with 1st letter H and 3rd letter D and 6th letter R and 7th letter S. In alphabetical order, they are: hedgers hidders
