FINOSUTRA

  Participants in Derivatives Market What are  Market Participants in derivative market. There are broadly three types of participants in the derivatives market ‐ hedgers, traders  (also called speculators) and arbitrageurs. An individual may play different roles in  different market circumstances.    Hedgers  They face risk associated with the prices of underlying assets and use derivatives to  reduce  their  risk.  Corporations,  investing  institutions  and  banks  all  use  derivative  products to hedge or reduce their exposures to market variables such as interest rates,  share values, bond prices, currency exchange rates and commodity prices.     Speculators/Traders   They try to predict the future movements in prices of underlying assets and based on  the  view,  take  positions  in  derivative  contrac...