Comparison criteria | Hedging (Hedgers) | Speculators | Arbitrageurs |
Purpose | Preventing price volatility risks | - Place bets on future volatility in the opposite direction of hedger
- Increased profits through financial leverage
| - Take advantage of market valuation different
- Seeking risk-free profits
|
Risk appetite | Risk aversion | Accept high risk | |
Participants | - Financial institutions
- Non-financial institution
- Investors
- Government
| - Organization
- Retail Investor
| Usually a financial institution, business organization on the DS market |
Position | Underlying assets and Derivative Securities (concurrently) | Derivative securities | - Simultaneously buy and sell the same tool in two different markets
- Simultaneously buy and sell on the spot and DS markets
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