1, the purpose of the transaction is different.

The futures market is a place for producers and operators to avoid the risks of production and operation, and also a place for investors to transfer the risks of price fluctuations, with the aim of locking in costs or profits to control the risks brought by price fluctuations. Guess is different. Speculators participate in trading in order to take advantage of price fluctuations to earn income.

2, the operation method is different

Hedgers' positions are based on spot, that is to say, the subject matter of futures contracts bought or sold by futures hedgers is the goods or assets they hold (are willing to hold) in the spot market, and strive to ensure the same quantity, the same holding time but the opposite direction. These speculators don't need to consider. Speculators participate in trading according to their own funds, risk tolerance and market forecast.

3. Different risk tolerance

Hedgers only need to bear the risk brought by the change of basis, while speculators use the difference brought by price fluctuation to earn income. If the market trend deviates from the expected judgment, they often have to bear the risk of price fluctuation. Relatively speaking, the risk of hedging is small and the risk of speculation is high.

Tips: The above instructions are for reference only and do not make any suggestions. There are risks in entering the market, so investment needs to be cautious.

Reply time: 2021-1-10. Please refer to the latest business changes announced by Ping An Bank in official website.