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  • Actual for You - The Difference Between Hedgers and Speculators

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    Throughout wall street futures have had the reputation of being a game that is only played by high-risk speculators. But the truth is they play an important roll in stabilizing prices. There are two distinct types of players in this market.

    The hedgers are primarily interested in the commodities. They consist of producers, like farmers, mining companies, foresters, and oil drillers. or they can be users, like bankers, paper mills, jewelers, and oil producers. The main difference between these two types of hedgers is; the producers sell the futures contracts, and the users buy them. The primary concern of the hedger, is to protect themselves against price increases that will u

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    play an important roll in stabilizing prices. There are two distinct types of players in this market.

    The hedgers are primarily interested in the commodities. They consist of producers, like farmers, mining companies, foresters, and oil drillers. or they can be users, like bankers, paper mills, jewelers, and oil producers. The main difference between these two types of hedgers is; the producers sell the futures contracts, and the users buy them. The primary concern of the hedger, is to protect themselves against price increases that will u

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    erested in the commodities. They consist of producers, like farmers, mining companies, foresters, and oil drillers. or they can be users, like bankers, paper mills, jewelers, and oil producers. The main difference between these two types of hedgers is; the producers sell the futures contracts, and the users buy them. The primary concern of the hedger, is to protect themselves against price increases that will u
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    like bankers, paper mills, jewelers, and oil producers. The main difference between these two types of hedgers is; the producers sell the futures contracts, and the users buy them. The primary concern of the hedger, is to protect themselves against price increases that will u
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    futures contracts, and the users buy them. The primary concern of the hedger, is to protect themselves against price increases that will undercut their profits.

    Then there are the speculators, they trade futures strictly to make money. If you trade in the futures market, but never use the commodity itself, then you are speculator. Most speculators will buy and sell futures contracts, depending on which way the market happens to be going at the time with any particular commodity. Sometimes they will sell their futures contracts for more money than they paid for them, and use the profit that they make to off-set the higher price they will have to pay in the cash market. Either

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