QUESTION 28 Which type of trader typically seeks to profit from price movements? Hedger Speculator Arbitrageur Market maker

To determine which type of trader typically seeks to profit from price movements, let's analyze each option: 1. **Hedger**: A hedger is someone who uses financial instruments or market strategies to offset potential losses in investments. They are primarily focused on reducing risk rather than seeking profit from price movements. 2. **Speculator**: A speculator is a trader who seeks to profit from price movements in the market. They take on risk with the expectation that the price of an asset will move in their favor, allowing them to make a profit. 3. **Arbitrageur**: An arbitrageur seeks to profit from price discrepancies in different markets or forms of an asset. They exploit price differences rather than directly profiting from price movements. 4. **Market maker**: A market maker provides liquidity to the market by being ready to buy and sell securities at any time. While they may profit from the spread between buying and selling prices, their primary role is to facilitate trading rather than to profit from price movements. Based on this analysis, the type of trader that typically seeks to profit from price movements is the **Speculator**.