Financial market investors are classified based on their time horizon.
Investors:
Equity is an investment tool that doesn't have a time limit. It is suitable for investors who have a specific objective and a longer time horizon.
Futures and Options can be used as trading and hedging instruments.
Hedgers:
Participants in derivative markets that have been exposed to an underlying asset. They wish to mitigate the risk by taking positions in F&O markets.
Speculators:
These market participants account for 70% of total participants. They have a very short-term view of the future direction of stock or market and build positions in F&O.
Arbitrageurs:
Participants who take risks to make profit by taking different positions on the same or different contracts (i.e. across calendar periods or across exchanges) in order to en-cash mispricing opportunities.