The primary participants in the futures market are speculators, Therefore the given statement is true.
Who are speculators?
- Speculators are sophisticated investors or traders who buy assets for short periods of time and use strategies to profit from price changes. Speculators are important to markets because they provide liquidity while also taking on market risk.
- A speculator is someone who is willing to risk losing a large sum of money in exchange for the possibility of making even more money. A speculator, for example, may invest in a risky stock in the hope of eventually selling it for a profit.
- Investors grow their wealth in a systematic manner, purchasing assets with reasonable levels of risk in exchange for long-term growth. Speculators, on the other hand, purchase assets that may experience rapid growth but may also lose their entire value if they are not properly managed.
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