define hedger - market participantsa hedger


Define Hedger - Market Participants

A hedger desires to prevent price variation by locking in a purchase price of the underlying asset by a long position in a futures contract or a sales price by a short position. Effectively, the hedger passes off the risk of price difference to the speculator who is better able, or at least much more willing, to bear this risk.

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Financial Management: define hedger - market participantsa hedger
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