Who are the participants in the futures market referred to as hedgers?

Hedgers in the futures market are typically suppliers or producers who are seeking to lock in prices for their products or commodities. This strategy helps them manage the risk of price fluctuations that can occur between the time they produce or acquire their goods and when they sell them in the market. By using futures contracts, these participants are able to secure a fixed price for their commodities, which provides a degree of certainty and stability in their financial planning.

This approach is especially critical in markets where prices can be highly volatile, allowing producers—like farmers, manufacturers, and energy producers—to safeguard their profit margins against adverse price changes. Hedgers utilize these financial instruments not for speculation, but rather as a necessary tool to protect against potential losses, hence stabilizing their earnings and business operations.

Other options pertain to speculative strategies or market roles that do not focus on price certainty and risk management like hedging does, and therefore do not align with the primary purpose of hedgers in the futures market.