Which of the following statement is NOT true about derivative contracts?

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A long position is a bet that the number is going to fall while a short position is a bet that the number will rise in the future.

Derivative contract can be seen as a bet on which way the price of its underlying asset may move in the future.

Derivatives are often used for hedging, which aims at protecting a current financial position from potential losses.

Companies often use derivative contracts to transfer risk to another party.