Which One of the Following Statements About Speculators in Futures

question 27

Multiple Choice

Which one of the following statements about speculators in futures markets is correct?

• A) Their main aim is to reduce their exposure to risk.
• B) They make it difficult for hedgers to find someone to take the opposite position.
• C) They aid hedgers by adding to the liquidity in the markets.
• D) Once a trader is known as a speculator they are no longer allowed to participate in the markets.

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