Participants in a Derivative Market | Hedgers, Speculators and Arbitrageurs | Geojit
Main Menu
Untitled Page
Home > Equity > Derivatives > Participants in a Derivative Market
18 October 2017

Get Quotes

Instrument :


Expiry Date:


Strike Price :
Symbol :


Option Type :

Derivatives

Derivatives


Futures


Options


  More About Derivatives

Participants in a Derivative Market

The derivatives market is similar to any other financial market and has following three broad categories of participants:

Hedgers:

These are investors with a present or anticipated exposure to the underlying asset which is subject to price risks. Hedgers use the derivatives markets primarily for price risk management of assets and portfolios.

Speculators:

These are individuals who take a view on the future direction of the markets. They take a view whether prices would rise or fall in future and accordingly buy or sell futures and options to try and make a profit from the future price movements of the underlying asset.

Arbitrageurs:

They take positions in financial markets to earn riskless profits. The arbitrageurs take short and long positions in the same or different contracts at the same time to create a position which can generate a riskless profit.

Toll Free number: 1800-425-5501 / 1800-103-5501
FINANCIAL TOOLS