S3 4.6 Flashcards
1
Q
What do speculators profit from
A
From anticipating price changes
2
Q
Do speculators trade the cash market (actually take pay for the commodity or take delivery)?
A
No - only trade the futures market
3
Q
Are speculators long-term traders?
A
No - just short-term, risk takers
4
Q
What does “Risk Capital” not include
A
Does not include savings accounts or insurance policies
5
Q
What are long-term investors in the futures market?
A
Investors investing on Commodity pools and managed accounts to take advantage of diversification (since commodities are recognized as a type of asset)
