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Question 
distinguish between speculator and hedger
 Question Submitted By :: Knowledgeable
I also faced this Question!!     Rank Answer Posted By  
 
  Re: distinguish between speculator and hedger
Answer
# 1		 
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.
 
Is This Answer Correct ?    11 Yes 0 No
Giri
 
  Re: distinguish between speculator and hedger
Answer
# 2		 
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
 
Is This Answer Correct ?    4 Yes 3 No
Bunty
 
 
 

 
 
 
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