USA HISTORY

Detailed explanation-1: -Nonetheless, speculators aiming to profit in the futures market come in a variety of types. Speculators can be individual traders, proprietary trading firms, portfolio managers, hedge funds or market makers.

Detailed explanation-2: -A speculator is an individual or firm that, as the name suggests, speculates – or guesses – that the price of securities will go up or down and trades the securities based on their speculation. Speculators are also people who create fortunes and start, fund, or help to grow businesses.

Detailed explanation-3: -Speculators are sophisticated investors or traders who purchase assets for short periods of time and employ strategies in order to profit from changes in its price. Speculators are important to markets because they bring liquidity and assume market risk.

Detailed explanation-4: -Speculators earn a profit when they offset futures contracts to their benefit. To do this, a speculator buys contracts then sells them back at a higher (contract) price than that at which they purchased them. Conversely, they sell contracts and buy them back at a lower (contract) price than they sold them.