Required Legal Notice: Virtual currencies, real risks. The only guarantee in crypto is risk. Read more

Required Legal Notice: Virtual currencies, real risks. The only guarantee in crypto is risk. Warning: The value of your virtual currencies can rise or fall sharply, and your initial investment may be lost completely; virtual currencies are not covered by the guarantee funds that cover bank deposits; there is no legal mechanism on the virtual currencies market to prevent market manipulation or insider dealing; virtual currencies depend entirely on a specific computer technology and infrastructure, which in certain cases may be very recent and not yet adequately tested; if one loses the identification code or password giving access to the virtual wallet in which the virtual currency is stored, the currency held therein will be irretrievably lost; virtual currencies are currently accepted as a means of payment to a limited extent, and in most countries there is no legal obligation to accept them; for more information about the risks associated with an investment in virtual currencies, we advise you to read the Wikifin page What is a cryptocurrency? | Wikifin.

Speculative vs Hedging Trading

Last updated: 7 ліпеня 2025 г.

The purpose of speculative trading is to trade financial assets in hope of gaining profits. Traders that are speculators are not producers of the commodity that they are trading futures contracts of; and if a trader is trading stock index futures such as E-Micro S&P or E-Mini NASDAQ, they can only be speculative traders.

Hedging is the act of preventing an investment against price fluctuations of a specific commodity. For example, if someone is a farmer that is using the futures market to prevent against price fluctuations of corn; they are a hedging trader.

Brokerage services are provided by NinjaTrader Clearing, LLC doing business as Kraken Derivatives US, a Futures Commission Merchant registered with the Commodity Futures Trading Commission (CFTC) and a member of the National Futures Association (NFA ID #0309379).

Speculative vs Hedging Trading

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