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why are large speculators a mirror image of commercials?


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why are large speculators a mirror image of commercials?

  #11 (permalink)
Northernlimit
Toronto Canada
 
Posts: 53 since Jan 2017
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Small specs tend to trade counter to trend like hedgers. They try to pick tops and bottoms against the prevailing trend and they trade more frequently, whereas large specs have more difficulty changing their book around due to liquidity, so they are more likely to be big trend followers holding their positions for longer and bigger moves.

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  #12 (permalink)
 Dotilar 
Pamplona Spain
 
Posts: 9 since Jan 2020

It's not a zero sum game, but it's really near to it. SMCJB explained well enough.

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