In the futures markets speculators are mainly interested in:
A) attempting to make a profit by betting on expected price changes.
B) reducing their exposure to risk of price changes.
C) increasing market liquidity.
D) reducing the spread between the bid and ask prices on bonds.

Question

Quizplus · Accepted Answer

Speculators in futures markets are primarily motivated by the desire to make a profit by betting on expected price changes. They assume risk and hope to profit from changes in prices, as opposed to hedgers who use futures to offset risk in their underlying assets. Options B, C, and D are not accurate descriptions of the primary motivations of speculators in futures markets.

In the Futures Markets Speculators Are Mainly Interested In