Unlike hedgers, they have no spot in hand, and the vast majority of speculators are clients of commission agents. There are two reasons why the futures market attracts investors: one is the possibility of acquisition; The other is the motivation of transaction cost. Futures trading attracts a large number of speculators to enter the market with its small stimulation, professional knowledge and trading pleasure.
When speculators predict that the price of a futures commodity will rise, they often choose the opportunity to buy futures contracts first and then sell them when the price rises in the future. This situation is called "short selling" or "long selling". When speculators predict that the price of a futures commodity will fall, they first sell futures contracts on the futures exchange and then buy them when the price falls in the future. This is called "short selling" or "short selling". No matter "short selling" or "short selling", there are considerable risks. The key lies in the accuracy of forecasting price changes and the courage of speculators.
In the futures market, if there are no hedgers, the futures market will have no economic significance, because they provide a large number of goods and services for the whole society, and the futures market makes their products and services more effectively available to the market. Hedger's transaction is the main body of supply and demand in futures market. However, if only hedgers trade in the futures market, it will be difficult for them to find the object of trading, and thus they cannot be guaranteed to transfer the price risk. Speculators are the basic components of market circulation, and they attract the price risk between producers and users. Investors often grasp the changing trend of prices through forecasting in advance and continuous analysis, and always hope to short in the same position and short in the low position to profit from it. In futures trading, they constantly change their trading roles and hold futures contracts for a shorter time, unlike hedgers, thus promoting the market to be more liquid and efficient.