(1) Speculators are the undertakers of futures risks and the counterparties of hedgers. Hedging trading in futures market can avoid risks for producers and operators, but it only transfers risks and cannot eliminate them. The transferred risk needs corresponding undertakers, and futures speculators play the role of taking risks in the futures market. The practice of futures trading operation proves that it is difficult to transfer risks only through transactions between hedgers. If only the hedger participates in futures trading, then the transaction can only be established when the number of transactions between the buyer and the seller is completely equal. In fact, the imbalance between long hedging and short hedging often occurs. Therefore, it is difficult to hedge in a market with only hedgers.
Futures speculation now. The participation of speculators can just make up for this imbalance and promote the realization of futures trading driven by interest motives. Speculators keep buying and selling futures contracts in the futures market according to their own price judgments in order to profit from price fluctuations. In this process, speculators must take huge risks. Once the market price is contrary to the speculators' forecast, it will cause losses, which is exactly the part of the risk that hedgers try to avoid. If there are no speculators in the futures market or not enough speculators participate in the futures currency market, the hedger will have no counterparty, and the risk will not be passed on, so it will be difficult for the futures market to play its role in hedging and avoiding risks.
(2) Speculation promotes market liquidity and ensures the realization of the price discovery function in the futures market. It is found that the price function is realized under the condition of strong market liquidity. Generally speaking, the liquidity of the futures market depends on the number of speculative components. If there are only hedgers, even if a large amount of supply and demand information is concentrated, it is difficult for market participants to find counterparties, and a small amount of transactions can have a huge impact on prices. Don't be too rational in trading. Speculators who always deviate from the objective laws of the market will eventually rush out of the currency field. Speculation should be moderate, and excessive speculation such as manipulating the midfield can not only slow down price fluctuations, but also artificially widen the gap between supply and demand, destroy the relationship between supply and demand, aggravate price fluctuations, increase market risks, and make the market lose its normal function. Therefore, curbing excessive speculation and cracking down on market manipulation is one of the main tasks of securities regulators in various countries.