I think you gave the wrong question. The original question should be: briefly describe the difference between hedgers and speculators. Because hedging is just one of the investment strategies adopted by investors (it is a normal and commonly used investment means, especially in foreign exchange, futures and other industries), that is, investors may be hedgers, and hedgers may also be investors. There is no difference between the two, and the biggest difference may be that the scope of investors is larger.

The following are the differences between hedgers and speculators:

Hedgers are interested in the goods themselves. They may be manufacturers, such as farmers, mining companies, forestry companies and oil miners; It may also be users, such as bakers, paper makers, jewelers or oil dealers. Generally speaking, manufacturers sell futures contracts and users buy futures contracts.

On the other hand, speculators profit from futures trading. If an investor only buys and sells futures without using this commodity, then he is a speculator. Speculators either buy futures or sell futures, which mainly depends on their expectations of market changes in the price of this commodity.