1, bear the price risk. Futures speculators bear the risks that hedgers try to avoid and transfer, which makes hedging possible.
2. Improve market liquidity. Speculators frequently open positions and hedge contracts, which increases the trading volume in the futures market. Even if hedging transactions are easy to clinch, it can also reduce the price fluctuations that traders may cause when they enter and leave the market.
3. Keep the price system stable. Commodity prices in various futures markets are highly correlated with the prices of different commodities.
The participation of speculators promotes the price adjustment of related markets and related commodities, which is conducive to improving the unreasonable price situation in different regions, improving the supply and demand structure of commodities in different periods, and making commodity prices more reasonable; It is also conducive to adjusting the price ratio of a commodity to related commodities, making it more rational, thus maintaining the stability of the price system.
4. Form a reasonable price level. Speculators buy futures at a low price, increase demand and lead to price increase, and sell futures at a higher price level, reducing demand, thus stabilizing prices and stabilizing price fluctuations, thus forming a reasonable price level.