Who are the players in commodity Future Markets?
The commodities market will have three broad categories of market participants apart from brokers and the exchange administration-hedgers, speculators and arbitrageurs. Brokers will intermediate, facilitating hedgers and speculators. Hedgers are essentially players with an underlying risk in a commodity- they may be either producers or consumers who want to transfer the price risk onto the market. Speculators: they serve as counterparties to hedgers and accept the risk offered by the hedgers in a bid to gain from favourable price changes.
