n NISM Certifications
NSM General NISM
Medium

Participants who use currency derivatives to reduce currency risk are called:

Practice question from NISM Series I - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Speculators

  2. B

    Arbitragers

  3. Hedgers

    Correct answer

  4. D

    Traders

Why this is the answer

Hedgers use derivatives to protect against adverse currency movements, e.g., exporters/importers.

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