Hedging or speculation in derivative markets: the case of energy futures contracts
This study examines whether hedging or speculation is the principal motive behind trading in energy futures markets. This question is important since facilitating risk allocation is considered to be one of the main benefits of the futures markets, while excess speculation in futures markets could destabilize the underlying spot market. Studying the linkage between volume and subsequent price movements leads to the conclusion that hedgers dominate speculators in all of the markets examined.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 2 (2006)
Issue (Month): 3 (May)
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAFL20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAFL20|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Karpoff, Jonathan M., 1987. "The Relation between Price Changes and Trading Volume: A Survey," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 22(01), pages 109-126, March.
- Guillermo Llorente & Roni Michaely & Gideon Saar & Jiang Wang, 2002.
"Dynamic Volume-Return Relation of Individual Stocks,"
Review of Financial Studies,
Society for Financial Studies, vol. 15(4), pages 1005-1047.
- Guillermo Llorente & Roni Michaely & Gideon Saar & Jiang Wang, 2001. "Dynamic Volume-Return Relation of Individual Stocks," NBER Working Papers 8312, National Bureau of Economic Research, Inc.
- Brian M. Lucey, 2005. "Speculation or hedging in the Irish stock exchange," Applied Financial Economics Letters, Taylor and Francis Journals, vol. 1(1), pages 9-14, January.
- Changyun Wang, 2003.
"The behavior and performance of major types of futures traders,"
Journal of Futures Markets,
John Wiley & Sons, Ltd., vol. 23(1), pages 1-31, 01.
- Wang, Changyun, 2001. "The behavior and performance of major types of futures traders," MPRA Paper 36426, University Library of Munich, Germany, revised Jul 2002.
When requesting a correction, please mention this item's handle: RePEc:taf:apfelt:v:2:y:2006:i:3:p:189-192. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.