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The difference between hedging, speculation and insurance
1, different participants

Speculation is generally that individual investors participate in speculative transactions, and some enterprises and institutions also participate. Insurance exchange regulations can only be enterprises and institutions; Hedging is generally aimed at individual investors or enterprises.

2. The purpose of participation is different. Speculation is to earn the difference profit, profit in a short time and even violence; In order to avoid the price risk faced by enterprises, insurance will formulate trading strategies according to the industry and operating conditions; Hedging means that one investment deliberately reduces the risk of another investment.

3. The trading basis is different. Speculation focuses on price deviation and irrationality; The basis of insurance is the combination of the overall industry trend and its own business strategy; Hedging means shorting (or shorting) when you are bullish on a certain currency and bearish on a certain currency.