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Trading Activity and Prices in Energy Futures Market

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  • Aysegul Ates

    (Akdeniz University, Turkey)

Abstract

This paper aims to examine trading activity and the relationship between futures trading activity by trader type and energy price movements in three energy futures markets –natural gas, crude oil and heating oil. We find that the level of net positions of speculators are positively related to future returns and in contrast net positions of hedgers are negatively related to futures price changes in all three markets. The changes in net positions are relatively more informative compare to the level of net positions in predicting price changes in related markets

Suggested Citation

  • Aysegul Ates, 2016. "Trading Activity and Prices in Energy Futures Market," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 4(2), pages 1-11.
    • Handle: RePEc:ejn:ejefjr:v:4:y:2016:i:2:p:1-11
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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