Which type of investor are you - hedger, speculator or arbitrageur? Which type of investor are you - hedger, speculator or arbitrageur? Investors prefer derivatives as they facilitate price discovery, strengthen the underlying asset's liquidity, and work effectively as a hedging tool. Mandar Wagh / Friday, August 19, 2022 0 3081 Article rating: 4.5 Investors prefer derivatives as they facilitate price discovery, strengthen the underlying asset's liquidity, and work effectively as a hedging tool. Read more